The company had been planning to shut down one of the blast furnaces by the end of June and the second one by September
Tata is set to halt operations at its Port Talbot steel plant sooner than expected due to a strike by Unite, with workers informed of the accelerated timeline.
Originally, the company aimed to shut one blast furnace by the end of June and the other by September. However, the South Wales site’s workforce has been notified that the Unite strike, starting July 8, jeopardises the availability of essential resources needed for safe and stable operations.
An employee memo stated: “Therefore, we are left with no alternative but to take preparatory steps to cease operations on both blast furnaces and safely isolate them no later than July 7.” Unite initiated the strike in opposition to Tata’s plans to adopt greener steel production methods, which could result in thousands of job losses.
Additionally, Tata has taken legal action against Unite over the legitimacy of their strike ballot. A spokesperson for Tata Steel commented: “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.”
They added: “In the coming days, if we cannot be certain that we are able to continue to safely operate our assets in a stable fashion 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 recognise 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.”
A spokesperson from Tata added: “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 £1.25billion 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. We have secured serious investment from Labour to safeguard jobs. 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.”
She added: “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.”
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.”
While Community and the GMB unions are fighting against the plans, they’ve decided not to strike before the General Election. The unions are banking on a Labour victory at the polls, expecting urgent discussions with Tata post-election to explore alternatives to the current proposals.
Despite the pushback, Tata remains firm on transitioning from blast furnace operations to electric arc production, following the lead of other steelmakers. Tata has been vocal about the £1million daily losses at Port Talbot, which it claims cannot continue indefinitely.
Workers affected by the changes were initially offered an enhanced redundancy package by Tata, but the deal was scaled back after Unite members initiated a work-to-rule action earlier this month.
