Around 2,800 jobs will be lost despite £500 million in government support.
Multinational conglomerate Tata is set to close its Port Talbot steelworks earlier than initially announced due to strike plans.
The company has said it will bring the final closure date from September to July 7 as Unite members of the steelworks due to strike on July 8.
Reduction of emissions
One of the blast furnaces is to close at the end of this month in a bid to cut carbon emissions at what is the UK’s largest source of CO2.
But it looks like the second shutdown will take place next month, accelerating the plant’s closure and causing the loss of 2,800 jobs: 2,500 next year and another 300 in three years.
It comes despite £500m of taxpayers’ money supporting the site’s transition to cheaper, greener steel production to reduce emissions.
The previous blast furnaces that operated on fossil fuels will be replaced by a single electric arc furnace.
Political intervention
Labor had argued with the company to target any closures before a new government is elected on July 4.
Senior Labour officials, including Jo Stevens, the shadow secretary for Wales, had urged Tata to wait for a potential Labour government so that fresh talks could take place.
Sharon Graham, Unite general secretary, said: “Unite is fighting for the future of the steel industry. We have secured serious investment from Labour to safeguard jobs.”
The price of going green? Unions say it’s workers’ jobs
Ms Graham described Tata’s move as the “latest in a long line of threats that will not deter us”.
“The Unite campaign is not about selling jobs, it is about securing the long-term future of steelmaking in this country for thousands of workers in Port Talbot and South Wales. We are calling on the real decision makers in Mumbai to take this on. Challenge it, sit down, negotiate and realise that the investment secured will be good for the company and the workers.”
The GMB union also expressed its support, saying: “Tata must back down from this irreversible decision and protect its steelmaking assets. There are general elections in a few days which can change so much.”
A spokesperson for Tata Steel said Unite’s strike announcement was made unilaterally and the company “has unfortunately been forced to take legal action to challenge the validity of Unite’s ballot paper”.
“If we are not confident in the coming days that we can continue to operate our assets safely and stably during the strike period, we will have no choice but to suspend or cease heavy operations (including both blast furnaces) at the Port Talbot site.
“That is not a decision we would make lightly, and we recognize that it would be extremely costly and disruptive across the supply chain, but the safety of people in or around our sites will always take precedence over everything else.
“The company is once again calling on Unite to withdraw its industrial action and join the Community and GMB unions to consider the company’s proposed memorandum of understanding, which puts forward a broad proposal, including generous employee support packages, training and skills development.”
Welsh First Minister Vaughan Gething said: “We will not support the closure of either kiln.
“This will cause significant anxiety for workers, their families and the community. Urgent and good faith negotiations are required to ensure site safety and prevent a serious and lasting impact on Port Talbot, Wales and the UK .”