In a historic move, about 1,500 Tata Steel workers will begin an indefinite strike next month in response to the company's plans to cut thousands of jobs.
This will be the first strike by UK steelworkers in more than 40 years, according to the trade union Unite.
The strike, scheduled to begin on July 8, will affect Tata Steel's operations at its Port Talbot and Llanwern sites in Wales. The action comes after Tata Steel announced it would close both blast furnaces at Port Talbot by the end of September, resulting in the loss of around 2,800 jobs.
Company and union responses
Tata Steel has warned that if the strike jeopardizes the safety or stability of its operations, it may have to accelerate shutdown plans. The company is currently operating at a loss of £1 million per day due to operational instability of its steel making machine.
Sharon Graham, general secretary of the union, said workers were fighting not just for their jobs, but for the future of their communities and the steel industry in Wales. She stressed that the strikes will continue until Tata stops its “disastrous plans.”
In contrast, two other trade unions, Community and GMB, have decided to postpone any industrial action until after the next general election. Alun Davies, Community's national steel officer, noted that any decision to strike would be taken by their members, who represent the majority of workers affected by Tata's plans.
Tata Steel position
Tata Steel has urged Unite to suspend the strike and return to negotiations alongside other unions. The company also warned that it may withdraw the enhanced redundancy packages offered if the strike continues. Rajesh Nair, CEO of Tata Steel, said that the “most favorable financial package” ever offered by the company would not be available if workers participated in industrial action.
The company plans to invest £1.25 billion in building an electric arc furnace, which is a more environmentally friendly way of producing steel and requires fewer workers. The UK Government is contributing £500 million to this project. Tata Steel believes the move will secure the future of steelmaking at the site.
The planned strike marks a significant moment for the UK steel industry, highlighting ongoing tensions between workforce preservation and technological advances in manufacturing. The outcome of this industrial action is likely to have lasting implications for both Tata Steel's operations and the wider steel community in Wales.