Tata deals huge blow to Port Talbot steelworks
Thousands of jobs go as steel giant confirms electric arc furnace plans
Last updated 19th Jan 2024
Tata Steel has announced it is axing almost three thousand jobs and closing the two blast furnaces at its Port Talbot plant.
Most of those job losses will affect Port Talbot, with politicians saying it'll devastate the local economy.
This is the joint statement from the steel unions
"The steel unions – Community, Unite and GMB – met yesterday with senior representatives of Tata Steel, who formally responded to reject the Multi-Union Plan that the unions presented to the company on the 17th of November.
"This is of course extremely disappointing. In one area the company did accept the Multi-Union recommendation, which is to keep the Hot Strip Mill open to roll slab over a transition period, supporting hundreds of jobs there, but Tata have rejected our broader proposals to safeguard production capacity and protect jobs
"Since Tata Steel and the UK Government announced their bad deal for steel on the 15th of September, the unions have been clear that proposals to install a 3mt Electric Arc Furnace (EAF) are completely unacceptable. As Community and the GMB, our experts and Tata Steel all understand, the installation of a 3mt EAF Port Talbot inevitably means the end of the blast furnaces, major production cuts and thousands of job losses before 2027.
"It is extremely regretful that despite the incontrovertible evidence one union has refused to accept the facts, and continues to undermine the Multi-Union through their support for a 3mt EAF and unilaterally campaigning for discredited fantasy solutions. We urge them, once again, to get back on board and work with us to deliver the best possible outcomes for all of our members.
"The Multi-Union Plan was developed in line with the steel unions’ red lines agreed three years ago, which are to secure the future of Port Talbot steelmaking, to protect production capacity and the future of all the downstream plants, and to avoid any compulsory redundancies. The Multi-Union Plan was previously endorsed by all the steel unions and, as the company has acknowledged, proposes a credible alternative strategy for the decarbonisation of Tata Steel UK.
More than 3,000 jobs and the future of British steelmaking is at stake. It is an absolute disgrace that Tata Steel, and the UK Government, appear intent on pursuing the cheapest instead of the best plan for our industry, our steelworkers and our country. It’s unbelievable any Government would give a company £500m to throw 3,000 workers on the scrapheap, and our Government must reevaluate its miserly offer to support investment at Tata Steel.
"The German, French and Spanish Governments are all committing billions to secure the future of their strategically important steel industries, and our Government must show similar ambition. It is encouraging that the Labour Party have reaffirmed their commitment to the £3bn Green Steel Fund, and using it to supporting a just transition at Tata Steel UK. Tata must think again, and work with the UK Government and Labour to unlock the investment our industry needs and deserves.
"Community and GMB do not accept Tata Steel’s rejection of the Multi-Union Plan and confirmation they intend to press forward with their original devastating proposals. We will now consult our members on next steps and all options to protect jobs are on the table, including industrial action.
"Tata Steel and the UK Government must reconsider their positions in order to safeguard the future of British steelmaking, and head off a major industrial dispute. Since Tata acquired our business in 2007 they have been a responsible owner, and we recognise they have taken a long-term view where others might not have done. The coming weeks will put Tata’s values to the test."
Aberavon MP Stephen Kinnock said: "Tata's decision to follow the Conservative business model of managed decline for British steelmaking will cause the job losses of 3,000 hard-working men and women – each of whom have dedicated their lives to an industry which underpins Britain's automotive industry, railways, defence sector, consumer goods, construction, wind turbines and so much more.
"Global demand for steel is actually growing, but by pursuing a narrow Electric Arc Furnace-only model Tata Steel will be unable to seize the commercial opportunities of the future, while at the same time leaving Britain more dependent on imported steel from countries whose governments won't always have Britain's best interests at heart.
"Tata Steel and the Government must rethink their approach and recognise that an exciting and prosperous future for British steelmaking can be found by adopting the multi-union plan, which will be significantly strengthened by the investment that the Labour has pledged to deliver in government."
Plaid Cymru members for South Wales West Luke Fletcher and Sioned Williams said: “Tata’s decision to push ahead with potentially 3,000 job losses in Wales is absolutely devastating. Plaid Cymru is standing in solidarity with all the workers at this time and we stand ready to support those who need it.
“Port Talbot is Tata’s largest site in the UK, and workers here will be incredibly worried about this”.
“Decarbonisation should not be at the expense of workers, and currently we’re seeing highly skilled workers, who should be playing a part in that transition, being thrown on the scrapheap.
“Rather than cutting jobs, Tata should focus on retraining and reskilling, so that workers could transition to carbon-neutral steelmaking. The UK Government and Welsh Government must step in to make sure that those who face job losses get support urgently.
“This is going to have a devastating impact on not only the people of Port Talbot and its neighbouring communities but on the local and national economy.”
Welsh Lib Dem leader Jane Dodds said: “I am deeply disappointed to hear that Tata Steel will be closing their remaining blast furnaces in the UK. Something which could have a devastating impact on communities across the country, particularly in Port Talbot where the local economy is reliant on the nearby steel plant.
"The UK Conservative government, through their inability to support investment into UK steel, has failed towns like Port Talbot across the country.
"If the UK government was willing to implement a real and sustainable industrial strategy that protected jobs whilst simultaneously supporting the transition to low carbon sectors, we wouldn’t find ourselves in this mess.
"But now we are here, on the verge of witnessing the destruction of Port Talbot.
"The Prime Minister and his cabinet will never know what it’s like for the thousands of workers at risk of losing their jobs, they will never know the constant worrying and anxiety that comes with the prospect of losing one’s livelihood.
"They will never know, and they simply will never care.
"I urgently call on Tata Steel to put a pause on this decision and consider the impact that this will have. Losing so many jobs this summer during a financial crisis will be devastating.”