The union leaders of two south Wales Steelworks are planning to intensify industrial action in response to the dispute over nearly 3,000 jobs that is threatening to become an important issue at this year’s general elections.
Unite has announced that such actions are being planned at the Port Talbot & Llanwern Works after Tata Steel threatened to reduce redundancy payments as a result of members voting to ban overtime.
Tata had rejected this year a union plan designed to keep Port Talbot blast furnaces operating. Their closure would have put 2,800 jobs in danger and left the UK on track to become the sole major economy that is unable to produce steel from scratch.
Tata informed workers’ representatives that in January it was unable to afford the continued production of its Port Talbot plant, which is losing money. The company had a four-year plan for a transition towards greener production. The company claimed that operating the old furnaces cost it £1m per day.
The dispute now threatens spilling over into the general election – with three competing proposals coming from the Conservatives.
Tata and the Conservative Government agreed on a deal in the last year, whereby the company received £500m of state subsidies for the transition to “greener” fuel furnaces. These could reduce UK emissions by around 2% when renewable electricity is used. The deal included the closure of blast furnaces starting this month.
At the time the Business and Trade Secretary, Kemi Badenoch said: “This will ensure a sustainable future of Welsh steel and it is expected to save tens of thousands jobs on the long-term.”
Keir starmer, who visited Wales last week and said: “I’ll fight for every job in Wales. I will fight for the future for steel.”
Jo Stevens said, on Sunday, that “we have repeatedly stated that no irreversible decision should be taken before the polling day.” Labour’s steel fund plans will fuel the industry with the talent, skills and ambition of Welsh workers.
“We do not want to see any jobs disappear at this site, but Conservative Ministers failed to take measures to protect workers and local communities before an election was called.”
Labour announced that it would invest £3bn to transition from conventional steel to greener steel. Weekend reports, however, suggested that Labour would not support a union alternative plan which proposed keeping a blast-furnace in operation while building a electric arc furnace to save jobs.
Sharon Graham, the general secretary of Unite said, “Neither Labour nor Unite will tolerate Tata bullyboy tactics. The union has now decided to intensify industrial action as a direct response to Tata’s threats.
The company is holding the country hostage, and dumping thousands of workers into the trash. The incoming Labour government should ensure that Tata does the right thing.
Tata Steel’s spokesperson stated that the redundancy conditions offered were “generous”. The company is “now evaluating our legal options in regards to the legality of the ballot”.
He said: “The enhanced offer will remain in effect unless there is industrial action, in which event it will revert back to our standard terms.
We are considering moving up the date for the shutdown of blast furnace 5, and for the overall heavy-end operations to wind down, due to the impact of the current situation on the business and the potential for more disruption.
Port Talbot is expected to lose 1,900 jobs under the current plan.
Another 600 jobs will be lost in the UK over the next three to four years.
A spokesperson for the Conservative Party said: “The Conservative Government put in place one the largest support packages in UK History, investing half a million pounds in modern, new electric arc furnaces in order to secure the future the steelworks of south Wales.
“The Labour Party, despite being in power, has done nothing to assist this process. If this groundbreaking deal were to be reversed, it would mean that thousands of steel workers would lose their jobs or that tens and tens billions would have to be spent. This would lead to higher taxes.
Keir Starmer is making empty promises, because he has no plan. The Conservatives have a plan to regenerate the area around Port Talbot, and to create a transition board backed up by £80m to support steelworkers throughout the process. Labour, on the other hand, would bring us back to the beginning, with less jobs and higher tax.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.