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Thousands of job losses will start at Tata’s Port Talbot plant this year it is now expected. Reports have emerged after a meeting between unions and Tata bosses in London that the Indian-owned steel giant has rejected a union proposal to carry out its planned transformation to green steel manufacturing in a slower, less painful way.
It is understood all parts of Tata’s UK operation could be impacted, from those employed at works to those in admin roles. Tata has works in Wales at Trostre in Llanelli, Llanwern in Newport, Catnic in Caerphilly, Shotton in Deeside and the largest part of its workforce at Port Talbot. There are distribution centres elsewhere in the UK and development facilities, including in Swansea as well as works in Hartlepool, Corby and Wednesfield.
Some of the 3,000 expected job losses are expected to start in April, with the bulk having taken place by September this year, according to BBC reports. Both blast furnaces at the Port Talbot steelworks are set to shut.
However, there will be no formal announcement by Tata until Friday lunchtime and unions have said they will speak to their members first before publicly announcing more detail.
We understand the steel giant has told unions today it will go ahead with its own plan to close the blast furnaces at the site and replace them with electric arc furnaces. They are greener, but require fewer staff and it is expected to lead to mass redundancies at the Port Talbot plant and more elsewhere in the supply chain.
The current method of steel production, which involves making new steel in blast furnaces, is set to end and the company announced in September a plan to change to a new type of furnace which uses renewable electricity rather than fossil fuels to power the melting of scrap steel.
The company is planning to spend £1.25bn on the transformation and the UK Government said it would give a £500m subsidy towards the switch. However recycling steel requires far fewer workers and the steel is expected to have a small range of end uses meaning that unions say 3,000 fewer workers across Tata’s sites will be needed.
Unions had been urging Tata to stagger the transformation over a decade to protect jobs and also to investigate alternative forms of green steel production apart from electric arc furnaces. They argue that under their plan, the reduction in the workforce could be achieved more painlessly without compulsory redundancies.
Unions worked with industry experts Syndex to come up with an alternative plan which they said would reduce the impact on jobs. Initially backed by GMB, Community and Unite, Unite later withdrew its support. It is the proposals by Community and the GMB being considered. You can read those in full here.
Their plan would protect more than 2,300 jobs over a decade and would see no compulsory redundancies at Port Talbot as blast furnace number four would continue to run until the end of its life-cycle in 2032, while one small electric arc furnace and either a second or open slag bath furnace are built.
Speaking before leaks from the meeting all but confirmed the news, unions said they were braced for bad news and say they will fight any redundancies. Charlotte Brumpton-Childs, GMB National Officer, said: “The multi-union committee produced a well thought out and researched alternative proposal that we presented to the company. Our position remains any compulsory job losses are wholly avoidable and the people of south Wales, as well as the industry as a whole, deserve the support and consideration that our plan outlines.”
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Before we dive into the subject don’t forget to hit that like button and subscribe if you find this video helpful let’s get started ever pondered over the state of the steel industry in our rapidly evolving world this once Cornerstone of the Industrial Age is now in the throws of a massive
Transformation a shift towards green manufacturing is sweeping the industry and it’s not without its challenges take Tara for example the indian-owned steel giant recently it made headlines when it rejected a union proposal The Proposal sought to transition to Green steel manufacturing in a slower more measured manner however TARTA decided to forge
Ahead with its own plan sparking controversy the decision has sent shock waves through the industry and the ramifications are only beginning to unfold at the heart of the storm is tata’s Port talber plant the plant a Cornerstone of the local community and economy is expected to undergo a seismic
Shift thousands of jobs hang in the balance with redundancies starting as early as April and the majority by September this change is not confined to Port Tolbert alone tart’s operations across the UK including Works in Wales and distribution centers are expected to feel the Tremors of this transformation
The Catalyst the closure of both blast furnaces at the Port T butt steel Works in their place TARTA plans to introduce electric Arc furnaces A Greener alternative but one that requires fewer hands on deck the trans information whilst a leap towards environmentally friendly practices is expected to cost
More than just money in the face of such drastic changes unions are not backing down without a fight they’ve proposed an alternative plan a slower transformation over a 10-year period the goal to safeguard jobs and delve into different forms of green steel production the plan aims to keep the fourth Blast Furnace
Operational until 2032 protecting over 2,300 jobs in the process but despite the Union’s plea for a more gradual shift tataa has decided to proceed with its rapid transition leading to mass redundancies the Union’s resolve remains unshaken and they’ve expressed their intention to fight against any job losses a formal announcement from TARTA
Is anticipated soon an announcement that could change the face of the steel industry as the dust settles the steel industry is bracing itself for a future that promises both challenges and opportunities