Thousands of steel jobs set to go as union plan to save workers rejected

Steel group Tata is to go-ahead with its plans to close blast furnaces at its Port Talbot plant in a move that is expect to lead to the loss of 3,000 jobs,

Unions met with the company after presenting alternative proposals aimed at saving jobs at the south Wales site.

Tata rejected the plan and said they were pressing ahead with proposals for greener electric arc furnaces to curb the plant’s multi-million pound losses and cut carbon emissions.

Unions will consult their members on how to respond to job losses, with industrial action not being ruled out.

The National Trade Union Steel Co-ordinating Committee said they would be communicating “the outcomes of the meeting to our members in the first instance, as is right and proper, and we will make a further more detailed public statement in due course”.

Tata said it will invest about £750m as part of an agreement with the Government. The company has said previously that its UK operations were losing more than £1m a day. The Indian-owned multinational reportedly accepted a union plea to keep the hot strip mill open over a transition period, supporting hundreds more jobs.

A Tata Steel spokesman said ahead of the meeting: “We have recently announced a joint agreement between Tata Steel and UK Government for a proposal to invest in state-of-the art electric arc furnace steelmaking in Port Talbot.

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“We are committed to meaningful information sharing and consultation with our trade union partners about the plan to develop sustainable steelmaking in the UK and to find solutions for concerns they may have. While those discussions are ongoing it would not be appropriate to comment further.”

Stephen Kinnock, Labour MP for Aberavon, home of the Port Talbot steel works, said: “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.”

The Government said it will support employees and the local economy with £500m to help “transform the site and protect thousands of jobs – both in Port Talbot and the rest of the UK supply chain”.

“We are determined to secure a sustainable and competitive future for the UK steel sector. There is a broad range of support for staff affected, including a dedicated transition board backed by £80m funding from UK Government and £20m from Tata Steel,” a spokesman said.

Welsh nationalist Plaid Cymru officials said Tata should “focus on retraining and reskilling” instead of cutting jobs as it looks to decarbonise its sites.

Welsh Parliament members Luke Fletcher and Sioned Williams said: “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.”

Tata UK Steel aims to cut carbon emissions by 30 per cent by 2030 and being net-neutral by 2045. It claims the Port Talbot plant is ranked “in the top third of the most carbon dioxide efficient integrated steel works in the global benchmark”. Nevertheless, the steel works alone is responsible for 2 per cent of the UK’s total carbon emissions.