Tata redundancy offer callous, say steel unions

Tata Steel's site at Port Talbot site is the largest steelworks in the UK

Talks over the future of steelmaking in south Wales have broken down as unions have refused to agree to Tata Steel's restructuring plans.

Unions said the company had disregarded the impact of the changes on workers, their families and communities.

Both blast furnaces in Port Talbot are expected to close this year with 2,800 jobs lost across the UK as a result, and all those employed at the blast furnaces leaving their roles by the end of the year.

A Tata Steel spokesperson said it has put forward an extensive offer that includes an enhanced employee support package and a generous proposal for a skills and retraining scheme.

Tata and the unions have been in consultations for seven months after the company said it wanted to end blast furnace iron production in south Wales this year.

It currently employs 4,000 workers at Port Talbot and will begin a voluntary redundancy process in May.

The company plans to build a £1.25bn electric arc furnace to produce steel in a way which is less polluting than traditional blast furnaces but requires fewer workers.

Tata said the move would secure the future of steel making at the site and the UK government is contributing £500m towards the cost of the project.

In a joint statement, the Community, GMB and Unite unions said the offer to workers was a "callous attack" and "completely unacceptable".

According to the unions, Tata had hoped to get workers to agree to the closure of both blast furnaces by September.

They also said steelworkers who refused to take voluntary redundancy would be moved to a training programme which pays minimum wage after four months.

In addition, they said there was no guarantee on avoiding compulsory redundancies.

Charlotte Brumpton-Childs, GMB's national officer for steel said: "The strength of feeling is palpable, members feel they are being disregarded and being abandoned, and they're angry."

Roy Rickhuss, general secretary of Community, said: "Tata talks the talk and wants to be seen as a caring responsible employer, but the reality is they are determined to cut jobs and punish their most vulnerable employees who want job security."

He said the union would consult its members on their next steps.

Tata Steel said it had paused discussions with the unions without coming to an agreement.

"Following seven months of information sharing and consultation, last week we confirmed that we will be proceeding with our restructuring plans and a £1.25billion investment in green steelmaking to secure over 5000 jobs in Tata Steel UK. This week we have continued our open and constructive discussions with Trades Union partners through the UK Steel Committee.

“Our focus remains on creating a sustainable steel industry in the UK that supports manufacturing supply chains and steel communities through a just transition to low CO2 steelmaking," a company spokesperson added.

The Welsh government said: “We have consistently argued that there is a better deal for the industry and Tata workers that could and should be struck - securing a longer, fairer transition towards the greener production of steel in Wales.

"The Welsh government will continue to make the case for that fairer transition and do all we can to support the skilled and loyal workforce and those in the supply chain.”

On Tuesday, Jeremy Miles said in the Senedd it was "essential" that Tata "does all it can to avoid compulsory redundancies" and ensures affected employees get "appropriate help and guidance to reskill or seek employment".