Alternative plan to try to save jobs at Port Talbot steel plant rejected by Tata

ITV Wales' Political Editor Adrian Masters has the latest following Thursday's meeting in London.

An alternative plan put forward by trade unions trying to save thousands of jobs at the Port Talbot steel plan has been rejected by Tata, according to the Community union.

There are fears the steel giant's plans to install two new electric arc furnaces will lead to the loss of almost 3,000 jobs.

The Unite union said they will go ahead with already scheduled industrial action following the announcement.

Community criticised the decision not to accept the unions’ “credible alternative” to the company’s “bad deal for steel”.

Unions met the company in London on Thursday with another plea not to press ahead with its proposals for its plant in Port Talbot, south Wales, which will lead to the loss of jobs.

Tata Steel has insisted its £1.25 billion plan for a state-of-the-art electric arc furnace in Port Talbot would be the largest investment in the UK steel industry for decades and would secure its future.

Talking about Tata's plans to install a new furnance, a spokesperson for the steel giant said: “It would protect the majority of jobs, reduce the UK’s carbon emissions by five million tonnes a year and could kickstart a green industrial revolution in south Wales."

Community General Secretary Roy Rickhuss said after the meeting: “It’s incredibly disappointing that Tata have chosen to reject the multi-union plan, which is an ambitious and viable alternative to their destructive bad deal for steel."

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He added: “We do not accept the company’s assertion our plan was too expensive – in fact, it would have returned the company to profits, and the additional capital expenditure needed to make it a reality could have been funded by an additional £450m from the government – a drop in the water compared to what other European countries are investing in their domestic steel industries.

“Tata have made their decision, and our members will decide on our collective response.

“Tata made a proposal to negotiate a package with the unions to give us firm assurances on jobs and future investment, and we will consult our members on how we proceed

“We want to make one thing absolutely clear to the company: this isn’t over – not by a long shot. We will never stop fighting for our jobs, our industry, and our proud steel communities.”

Members of Community and the GMB are being balloted on whether to strike over the plans.

Unite members have already voted in favour of industrial action.

Community Assistant General Secretary Alasdair McDiarmid said: “Tata have made a serious mistake in rejecting the credible, expert-backed Multi-Union Plan. Today’s announcement confirms that this was never about what was best for the steel industry, the country or the long-term future of the business: it was always about short-term cost-cutting."

He added: “With their decision today, Tata have missed an historic opportunity to commit to a bold and ambitious future based on transformative strategic investment. We will continue to call on the company to change course, and a clear mandate for industrial action in our ongoing ballot will only strengthen our hand in negotiations.

“Our resolve to oppose Tata’s bad deal for steel – a plan which would be bad for jobs, bad for the environment, bad for national security, and devastating for our communities – has never been stronger.”

• Energy Secretary Jeremy Miles told ITV Wales the Welsh Government "stands ready" to support steel workers and the wider community

Community’s national officer for steel Alun Davies said: “This is an incredibly disappointing day for Tata steelworkers who have been betrayed by a company which owes them so much.

“It is disgraceful that Tata Steel have chosen to pursue a discredited, bargain basement deal over a viable plan for decarbonisation which would protect jobs and preserve the country’s primary steelmaking capacity.

“I know that many of our members will be feeling dejected and anxious today, so it’s vital we stick together to look after one another in these uncertain times.

“It’s also vital that we take a stand together and send a message to Tata that we will not go quietly into the night.

“As someone who has had the privilege of working at Port Talbot and Llanwern, I know first-hand how steel is part of our lifeblood here in South Wales. If the company think that we’ll let them trample over our industry and our communities now, they really don’t know us at all.”

Meanwhile, the Trades Union Congress (TUC) described Tata's rejection of the plan as a "hammer blow to manufacturing and the UK economy," with the steel giant "pressing ahead with mass redundancies."

The TUC added: "Workers and their unions at Tata have our full support."

Jo Stevens, shadow Welsh secretary, said: “This is a total gut punch for people in Port Talbot, and the potential economic consequences will reverberate across south Wales for years.

“The Conservative Welsh Secretary has said no one will be left behind if they lose their job. I will be holding him to account on that every step of the way.

“A UK Labour government will invest in our steel industry to make sure the future of UK steel is fuelled by the skills, talent and ambition of Welsh steelworkers.”

• Welsh Secretary David TC Davies told ITV Wales the UK Government is trying to minimise the impact on the community

Welsh Secretary David TC Davies told ITV Wales: "We recognise that the community is going to suffer so we've put in place a plan worth £100 million. £80 million of that is coming from UK Government.

"We want to make sure that every single person affected is able to get the sort of high quality training that they need to go and get work elsewhere."

Jeremy Miles, the Welsh Energy Secretary said: "We as a government stand ready to support the workforce and the community in every way that we can. We have a range of programmes that we are able to offer to support workers who are affected by job losses in this way."

Paul Davies, the chair of the Senedd's Economy, Trade and Rural Affairs Committee, said the group of MSs was "deeply saddened" to hear the news, which he said will have "major implications for workers and their communities."

Both the Welsh Secretary and Mr Miles are part of the Transition Board overseeing the move to an electric arc furnace.

In a joint statement following Thursday's meeting in London, the group said: "A Local Economic Action Plan was presented to the Transition Board. The Board endorsed the Plan as a broad road map whilst also recognising the outstanding issues need to be addressed and discussed prioritisation of the proposed interventions.

"The Board agreed that supporting affected employees to find new well-paid jobs will be its first priority. The Board will also prioritise supporting businesses affected in the supply chain. The Board also recognised the importance of longer-term regeneration of the region.

"It was agreed that this plan, overseen by Neath Port Talbot Council, will be used as a basis for investment, subject to business cases being presented to the Board at subsequent meetings."

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