Labour politicians are calling on Tata Steel to refrain from making irreversible decisions before next week’s general election.
The Indian company recently announced that it plans to accelerate the closure of blast furnaces at its Port Talbot plant due to an impending industrial strike.
Tata Steel, Britain’s largest steelmaker, has told workers at its site in south Wales that operations could be halted early due to an impending strike by members of the Unite union.
The company had initially planned to shut down one of the furnaces by the end of June and the second by September, switching to a more environmentally friendly electric arc furnace as part of a government-backed initiative.
The Unite movement went on strike to protest these plans, which they claimed would lead to the loss of thousands of jobs.
In response to the planned strike on July 8, Tata announced that it had “no alternative but to take preparatory steps to stop operations at both blast furnaces and safely isolate them by July 7”.
The announcement sparked union condemnation and calls from Labor politicians for Tata to delay their plans. Stephen Kinnock, Labour’s parliamentary candidate for Aberavon Maesteg, and David Rees, Labour’s Sind MP for Aberavon, issued a joint statement stressing the importance of prioritizing the safety and security of steel and plant workers.
They added: “Tata would not have been facing a strike if it had not chosen to go ahead with the blast furnace closures so quickly. We have consistently urged Tata to avoid any irreversible action until after the general election, given the possibility of discussions with a Labour government regarding the £2.5bn steel renewal fund.
Labour has pledged to secure a better deal for the steel industry if it comes to power and has previously urged Tata to consider a compromise plan, backed by community and trade unions, to maintain one blast furnace until the electric arc furnace is up and running. However, that proposal would cost the taxpayer more than the £500m offered by the current Conservative government and has been rejected by Tata, which plans to invest £750m to decarbonise its UK operations under the current agreement with ministers.
Tata, which has taken legal action against Unite’s strike vote, has stressed that the temporary shutdown or suspension of heavy operations, including both blast furnaces, is not a decision to be taken lightly given its significant cost and disruption across the supply chain. The company insists that the safety of people on or around its sites remains its top priority.
Sharon Graham, General Secretary of Unite, commented: “Tata’s threat to close or decommission the blast furnaces three months earlier than planned is the latest in a series of intimidations that will not deter us. We urge the real decision-makers in Mumbai to intervene in this dispute.” .