Home Business News Despite Labour calling for talks Tata Steel will continue with thousands of job cuts

Despite Labour calling for talks Tata Steel will continue with thousands of job cuts

11th Jun 24 10:53 am

Tata Steel has said that they will continue with their plans to cut thousands of jobs by closing the furnaces and go ahead with the planned green furnaces which require less workers.

At the Port Talbot steel works, South Wales Tata have said that they are “apprehensive” that the restructuring plans could be placed into “peril.”

Tata said that media reports of their planned restructuring “may be put in peril due to policy differences expressed by the Conservative and Labour Parties, during the ongoing election period.”

PA news agency reported, Tata Steel said in a statement, “We wish to inform that (Tata Steel) confirms that it will continue with the announced closure of the heavy end assets and restructuring programme at Port Talbot in the coming months.”

Tata added, “Over the last three years (Tata Steel has) worked hard to develop a sustainable future for Tata Steel UK and the Port Talbot Plant.

“This project has been developed to ensure production of low-emission high-quality steel in Port Talbot, preserving primary steelmaking in Britain and creating the potential for a future green manufacturing cluster in South Wales.”

Tata are to move to greener production and will use electric arc furnaces which will cost £1.25 billion in investment.

The steelmaking giant said that they had called for safeguards with the Tory government for a £500 million grant to go towards the electric arc furnaces.

“Further political uncertainty on the timing and form of the grant will place the (electric arc furnace) project and the long-term future of steelmaking at Port Talbot at significant risk,” it said.

On Monday t Labour Party has called on Tata Steel to keep the furnaces running until after the 4 July general election as thousands of jobs are at risk.

Labour have called on Tata to delay closing the furnaces until after the election as they believe that there “could be some sort of deal” done as then fresh talks can take place.

The Shadow Welsh Secretary Jo Stevens, said she was “convinced” that a Labour government can arrange a deal, PA news agency reported.

“We wouldn’t be here if we didn’t think there could be some sort of deal,” Stevens said.

“What we have said to Tata all along is please don’t make any irreversible decisions before the General Election.

“And that means not switching off the blast furnace, which is due to happen at the end of this month.

“We want them to look at the union plan again, we want to talk to them, they know that we have our green steel fund ready to go, that will be there to support Welsh steel workers and steel workers across the United Kingdom to ensure a smooth transition to decarbonised steel.”

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