Union urges Tata to negotiate as fears grow for earlier closure of Port Talbot blast furnaces

A steel union has called for Tata Steel to hold further talks with them after the company told staff that both blast furnaces in Port Talbot could close as early as next week.Tata had planned to close one of its blast furnaces before the end of June, with the other shutting down by September, but said it would take steps to cease operations at the Port Talbot plant earlier than planned because of safety fears ahead of a proposed strike by Unite the union.On Saturday, Unite urged Tata to hold off making "any irreversible decisions" ahead of the UK general election and to enter into "meaningful negotiations" with the union.

Tata had told workers that because of the proposed strike by members of Unite from 8 July, it can no longer be "assured of sufficient resources being available to ensure safe and stable operations."

In a message to employees on Thursday, Chief Executive Officer, Rajesh Nair said: "Therefore, we are left with no alternative but to take preparatory steps to cease operations on both Blast Furnaces (including the wider heavy end assets) and safely isolate them no later than Sunday 7 July 2024."

Unite called the strike in protest at the company's plans to cut thousands of jobs by ending traditional steelmaking at the site and moving to a greener form of steel production.

Tata has launched legal action against Unite’s ballot.

In the letter sent to staff by Mr Nair, he said: "We will need to begin our preparatory actions from Monday 1 July with the expectation that all heavy end operations would cease by Friday 5 July."

The company has made it clear it is pressing ahead with its plans to halt its blast furnace production and invest in an electric arc furnace which would melt scrap steel.

Tata Steel UK says it is currently losing over £1 million a day, which it has warned is unsustainable.

The company has also insisted it is not safe nor financially practicable to build an electric arc furnace on the Port Talbot site while the current blast furnaces are still operational.

A Tata Steel spokesperson said: “Following the announcement by Unite Union to unilaterally call strike action from 8 July, Tata Steel is unfortunately forced to commence legal action to challenge the validity of Unite’s ballot.

The spokesperson continued: “In the coming days, if we cannot be certain that we are able to continue to safely and stably operate our assets through the period of strike action, we will not have any choice but to pause or stop heavy end operations (including both blast furnaces) on the Port Talbot site.

“That is not a decision we would take lightly, and we recognize that it would prove extremely costly and disruptive throughout the supply chain, but the safety of people on or around our sites will always take priority over everything else.

“The company again calls for Unite to withdraw its industrial action and join Community and GMB unions in giving consideration to the company’s proposed Memorandum of Understanding, which puts forward a wide-ranging proposal including generous employee support packages, training, and skills development.“We understand the impact of our restructuring will have on many employees and contractors, but we remain committed to a just transition and—pending a government-backed grant funding agreement—to the £1.25bn investment in low-CO2 steelmaking, which will ensure Tata Steel has a long and sustainable future in the UK.”Unite general secretary Sharon Graham said: “Unite is fighting for the future of the steel industry.“Tata putting out a statement to shut or pause its blast furnaces three months earlier than they intended to is the latest in a long line of threats that won’t deter us.“The Unite campaign is not about selling jobs, it’s about securing the long-term future of steel making in this country for thousands of workers in Port Talbot and south Wales.

“We call on the real decision makers in Mumbai to take hold of this dispute, sit down, negotiate and realise that the investment secured will be good for the company and workers.”

Community and the GMB unions are also campaigning against the plans, but have ruled out taking industrial action before the General Election on 4 July.

Charlotte Brumpton-Childs, GMB national officer, said: “This is a sad day for steel. Tata must step back from this irreversible decision and safeguard steelmaking assets. There’s a General Election in days that could change everything so much.

“We know there is a future for steelmaking in south Wales. That future must be preserved. GMB’s next actions will be decided by our members.”

Alun Davies, national officer of the Community union, said: “Community condemns Tata’s unacceptable decision to bring forward the closure of the Port Talbot blast furnaces.

“We continue to support the Labour Party’s call for Tata not to make irreversible decisions before the General Election, and we urge all stakeholders to engage in meaningful discussions through the Multi-Union Steel Committee.

“All parties must pull back from the brink and negotiate to protect jobs and the interests of all union members at Tata Steel UK.”

A joint statement from First Minister Vaughan Gething and economy secretary Jeremy Miles said: "The news that Tata could switch off blast furnaces 4 and 5 at Port Talbot next week is extraordinary and will cause huge anxiety for the workforce, their families and the community.

"The Welsh Government cannot and will not support the closure of both blast furnaces. As we have said many times, the company should wait for the outcome of next week’s General Election before taking irreversible decisions. Acting whilst the nation goes to the polls does not help to deescalate matters.

"Urgent and good faith negotiations are now required to ensure safety at the site and avoid an outcome that would have such a severe and lasting impact on Port Talbot, Wales and the UK."

Welsh Conservative shadow minister for economy and energy, Samuel Kurtz MS, said: "This is disappointing news that will cause additional distress to communities already dealing with enough as it is. Tata have shown no goodwill to their workforce at what is an anxious time.

"The Welsh Labour government have also only paid lip service to Tata’s workforce, failing to contribute a penny to the transition board, and UK Labour’s manifesto says nothing on what it would do differently to support Port Talbot’s steelworkers."

Plaid Cymru economy spokesperson Luke Fletcher MS said the early closures would be "terrible for Wales, our economy and our communities".

He added: "The time has come now for an incoming Labour government to put words into action on steel. 'Save our steel' is no good as just a slogan. If we are going to save our steel, nationalisation needs to happen on day one.

"Enough is enough - it’s time to be bold and ambitious because if we aren’t, future generations will not thank us for letting our steel industry wither on the vine."

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