Strike at Port Talbot steelworks called off

• ITV Wales' National Correspondent, Rob Osborne, reports from Port Talbot.

Planned strike action at Port Talbot steelworks which had led to Tata Steel saying it would close both blast furnaces earlier than planned has been called off.

Workers were told last week that because of planned strike by members of Unite from July 8, Tata could no longer be assured of sufficient resources being available to ensure safe and stable operations, with the company saying it would proceed to take steps to close both blast furnaces this week.

Strike action by members of Unite has now been called off. The union said the current industrial action such as a ban on overtime and next week’s strike had been suspended.

It had been in protest at Tata's plans to switch to a more environmentally-friendly way to produce steel, with the loss of thousands of jobs.

The company had been planning to shut down one of the blast furnaces at Port Talbot by the end of June and the second one by September. The first blast furnace is now set to be shut down this week, and the second at the end of September.

Unite said its decision follows confirmation from Tata, arising from high-level talks throughout the weekend, that it was prepared to enter into negotiations about future investment for its operations and not just redundancies, including at Port Talbot.

Tata had also commenced legal action against Unite’s ballot.

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

The withdrawal means talks between Tata and the three unions about future investment in the site can continue.

A Tata Steel spokesperson said: "We have received written confirmation from Unite Union that with immediate effect they are suspending their current action short of a strike as well as the potential strike action due to commence on Monday, 8 July.

"As a result, and given we can now be confident of ensuring appropriate resourcing of activities to operate safely, we will halt preparations for the early cessation of operations on Blast Furnace 4 and the wider heavy end in Port Talbot, planned for this week - we welcome the fact that we have avoided having to progress down this path.

"The resumption of discussions with the UKSC will progress from the position reached in the last meeting of 22 May and will focus on the future investments and aspirations for the business, and not on a renegotiation of our existing plan for the heavy-end closure or the enhanced employment support terms.

"The wind down process for Blast Furnace 5 has now begun to plan and we expect to produce the final iron at the end of this week."

Unite general secretary Sharon Graham said: "This is a significant development in the battle to protect jobs and the long-term future of steel making in south Wales. Investment from Labour secured by Unite will be key to the future of the site.

"This breakthrough would not have come about without the courage of our members at Port Talbot who were prepared to stand up and fight for their jobs. Workers were simply not prepared to stand idly by while steel making ended and their communities were laid to waste.

"It is essential that these talks progress swiftly and in good faith with the focus on fresh investment and ensuring the long-term continuation of steel making in south Wales."

Alun Davies, Community national officer, said: "With thousands of jobs at stake, we welcome Unite’s decision to withdraw their strike action and get back around the table with their sister steel unions.

"Tata confirmed that if the strike was called off they are ready to resume discussions on a potential MOU, through the Multi-Union Steel Committee which is chaired by Community.

"The truth is Tata never walked away from those discussions, and at our last meeting on 22 May all unions agreed to conclude the negotiations and put the outcome to our members.

"Community will welcome resuming those discussions, but we regret that zero progress has been made since 22 May.

"I think it's mindful that we don't forget the other people on site so whilst Tata have said that 2,800 jobs will be lost, with contractors you'll most probably lose another 9,000 in the supply chain with them. We're trying to work with them too - they can't be forgotten in all of this."

In the wake of Tata announcing it would potentially close both blast furnaces earlier than planned, Tata Steel UK's chief executive Rajesh Nair wrote to the three unions representing steelworkers offering to hold fresh talks about their plans in Port Talbot, but only if planned strike action was called off.

Tata has made it clear it is pressing ahead with switching from blast furnace production to an electric arc furnace, as other steel companies are doing.

Tata says it is losing £1million a day at Port Talbot which it has warned is unsustainable. Tata has also insisted it is not safe nor financially practical to build an electric arc furnace at the Port Talbot site while the current blast furnaces are still operational.

Mr Nair's letter said an intended meeting to discuss the final proposed wording of a memorandum of understanding (MoU) did not take place due to Unite announcing strike action would begin on 8 July.

He said the company wanted to "continue our meetings with all unions of the UKSC (UK Steel Committee) to finalise the wording of the MoU and the specific details of the future assurances for TSUK contained within it, and for all unions to then place the final details of the MoU in front their members for consideration and decision, as previously committed in the meeting on 22 May 2024."

He said the company would hold further talks with the unions if industrial action was called off, adding: "As we have mentioned separately, and as stated in the joint letter to the company from Community and GMB unions, we recognise that no MoU will be concluded and agreed until after the impending general election."

A Welsh Government spokesperson said: "All parties are in agreement that they want to see a viable future for a green steel industry in south Wales, our call is for a de-escalation of the current tensions so that we can all work together to achieve that aim.

"We hope all parties can find a way forward that prevents early closure of Blast Furnace 4."

Welsh Conservatives' shadow minister for economy and energy, Samuel Kurtz MS, said: "We welcome any discussions that bring both the steelworkers and Tata to the table to iron out how best jobs can be supported in the short term, as an early closure of the blast furnaces will bring additional distress to communities already dealing with enough as it is.

"The Welsh Labour government have 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’s economy and energy spokesperson, Luke Fletcher MS, said: “Tata are not offering a renegotiation on the proposals on the table.

"The blast furnaces are still set to close. This remains a fight for the future of primary steel making at the site.

“Plaid Cymru are committed to a just transition that maintains jobs not just at the site, but in the wider community of Port Talbot.

"The nationalisation of the steel works must be on the government’s agenda now.”

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know...