Unions mull strikes as TATA rejects job-saving alternatives, Tories accused of “Managed Decline”.

In a major blow to UK manufacturing, Tata Steel has confirmed the closure of blast furnaces at Port Talbot, resulting in nearly 3,000 job losses. Crisis talks with unions failed to yield an agreement, and the company rejected an alternative job-saving proposal. The move is described as a “crushing blow” for the region’s economy, despite a previous £500 million investment by Tory ministers to transition to cleaner steel production.

Stephen Kinnock, Labour MP for Aberavon, urged more talks to avert the crisis, emphasizing the devastating impact on the town. He criticized the £500 million plan involving taxpayer money, which would make thousands redundant and jeopardize the UK’s steel production capability.

Wales’ economy minister, Vaughan Gething, sought an urgent call with Business Secretary Kemi Badenoch, but the request was delegated to junior minister Nusrat Ghani, offering a meeting next Tuesday. Tata plans to close the last two blast furnaces at the Port Talbot plant by 2027, leading to significant job losses.

The proposed shift to Electric Arc Furnaces (EAC) raises concerns about the plant’s reliance on cheap overseas scrap metal for production. Unions, including Community and GMB, proposed an alternative plan that involved closing one blast furnace and replacing it with a smaller EAC, allowing the remaining blast furnace to operate until 2032.

Tata Steel stated that the restructuring plan, intended to transition to green steel production, would reduce CO2 emissions and maintain the country’s self-sufficiency in steelmaking. However, unions criticized the decision, with Community General Secretary Roy Rickhuss calling it “unacceptable” and warning of devastating consequences.

Labour’s Shadow Business and Trade Secretary, Jonathan Reynolds, criticized the Conservative Government’s plan, accusing them of using taxpayer money to make thousands redundant and undermining the UK’s ability to produce primary steel.

Charlotte Brumpton-Childs, GMB national officer, expressed concerns about the large-scale job losses impacting Port Talbot and UK manufacturing. Unions presented a costed alternative to avoid compulsory redundancies.

Tata Steel plans to begin statutory consultation as part of its restructuring plan, aiming to reverse a decade of losses and transition to sustainable, green steel production. The announced job losses would be phased in by 2027.