Port Talbot: Steelworkers frightened by Tata job loss reports

Steelworkers want clarity over whether the UK government will invest £500m into Tata Steel

Steelworkers have said reports of potential job losses in Port Talbot were "frightening" and called for certainty about a deal to decarbonise.

Shadow Business Secretary Jonathan Reynolds met steelworkers after reports the UK government could offer £500m to Tata Steel to help it reach net zero.

Mr Reynolds said it seemed ministers were "spending half a billion pounds to make 3,000 people unemployed".

Tata Steel UK said it was "fully committed to meaningful consultation".

The UK government has also been asked to comment.

A UK government announcement is expected on Friday about the amount of money it is willing to spend to help Tata Steel modernise its operations across the UK.

• UK offers Tata £500m in green steel deal - report

• Steel industry needs money soon, union boss warns

Alan Coombs, a member of the Community union, said workers had "not been part of any discussions" in Port Talbot.

"We don't know the scope of things, how big, how small it is going to be.

"We have heard some things in the press.

"Some of it is quite frightening, to be honest with you - but we have got to wait until we get the official statement from Tata and they present something to us.

"They haven't presented anything to any unions at this point in time."

The Financial Times and Sky News reported a deal to fund the decarbonisation of Tata Steel UK's operations was imminent, and said that the UK government would contribute £500m towards the plan.

The Financial Times and Sky News have reported that a deal to fund the decarbonisation of Tata Steel UK's operations was imminent

But they warned the changes would include long-term job losses of about 3,000 workers across the UK.

Mr Reynolds said it was important that workers got certainty about the future.

"What I am extremely alarmed about is that first of all the workers here have been promised, as recently as a fortnight ago, that they would be integral to any transition plans, that they would be a part of that process but they have been kept completely in the dark. That is unacceptable," Mr Reynolds said.

He added: "But I am also worried, if the reports are true, that the UK Conservative government is proposing spending half a billion pounds to make 3,000 people unemployed.

"We want green steel but there are ways to do that. And there are ways to do that which makes it an incredibly positive story for the UK. But we are not getting that at the minute.

"People will know that the technology that is being proposed, if the reports are true, fundamentally limits the products that can be made here in Port Talbot.

"There are huge repercussions for that, there are huge repercussions for the existing order book let alone the future."

MP Stephen Kinnock says Tata should explore all options

MP for Aberavon Stephen Kinnock said Tata should explore all options, rather than commit to electric arc furnaces.

"[Electric arc alone] seems to me to be a very short-sighted approach.

"They should be looking at all kinds of different options, not just electric arc furnaces but also direct reduced iron, hydrogen and carbon capture and storage so that we can protect the order book, keep all of those jobs, and also move towards a cleaner, greener way of making steel."

Community union national officer Alun Davies said he was "gutted" by the reported proposals that may mean 3,000 job losses.

"I don't even want to think about that, to be honest. I have a lot of friends in there, a lot of friends who rely on it as a well-paid job."

Steelworkers held a rally before the meeting on Thursday

Responding to reports that Tata and the UK government could announce a deal as soon as Friday Mr Davies said: "If this is correct, then Tata should have really told us what we are expecting.

"These conversations should have happened a while ago.

Gary Smith, general secretary of the GMB union said the deal "will have devastating consequences for jobs and workers", adding: "It will rip the heart out of the Port Talbot community."

He said the union has been calling for investment for years but accused the government of not listening, which he said meant "thousands of workers, their families and communities will pay the price".

Dr Simon Cran-McGreehin, head of analysis at the Energy and Climate Intelligence Unit (ECIU), said: "The government may be trying to do the right thing here, but if this deal leads to 3,000 job losses it can't be right."

He said jobs could be protected by manufacturing hydrogen-based steel and having arc furnaces that recycle used steel.

"We have been talking to them about decarbonisation for two or three years and have always been told they would consult with us fully, which is why this is such a shock."

A UK government source told the BBC that any deal would be "hugely significant". They added Tata's UK business had been making losses for years, and the alternative would be 8,000 jobs lost with over 12,000 in supply chain at risk.

In a statement, Tata said: "Tata Steel is fully committed to meaningful consultation and due process as soon as practicable with our stakeholders, including trade union partners and employee representatives, prior to decision making on relevant proposals including those relating to decarbonisation."