Trade union leaders are preparing to intensify strike action at two south Wales steelworks as a dispute over the cuts of around 3,000 jobs intensifies, threatening to become a major issue in the general election.
Unite said the measures at the Port Talbot and Llanwern plants were planned after the plants’ Indian owner, Tata Steel, threatened to cut severance pay in response to members voting to ban overtime.
The move comes after Tata earlier this year rejected union plans to keep its Port Talbot blast furnace open, a move that would put 2,800 jobs at risk and leave Britain the only major economy unable to produce steel from scratch.
Tata told worker representatives in January that it could no longer afford to continue production at its loss-making Port Talbot plant until a four-year transition to green manufacturing was completed. The company said it was losing £1 million a day running the old furnaces.
The debate now threatens to spill over into a general election issue, with three competing proposals from the Conservatives, Labour and Labour.
Tata and the Conservative government agreed last year to a £500 million state grant to help the company transition to new, “greener” furnaces that could cut UK emissions by about 2% if renewable electricity is used. But the deal also includes starting to close blast furnaces from this month, triggering job losses.
At the time, Business and Trade Minister Kemi Badenoch said: “The proposals will secure a sustainable future for the steel industry in Wales and are expected to preserve thousands of jobs in the long term.”
“I will fight for every job in Wales and for the future of the steel industry,” First Minister Keir Starmer said during a visit to Wales last week, suggesting a Labour government could overturn the deal.
Welsh shadow minister Jo Stevens said on Sunday: “I have repeatedly said that irreversible decisions should not be made before polling day. Labour’s steel fund plans will ensure the future of the industry is driven by the skills, talent and ambition of Welsh steelworkers.”
“We do not want any frontline jobs to be lost, but Conservative ministers have failed to take steps to protect workers and communities before the general election is called.”
Labour has said it would invest £3 billion in the transition to green steel, but reports at the weekend said the party would not support an alternative Labour plan to keep blast furnaces running while building electric arc furnaces and preserving jobs.
Unity general secretary Sharon Graham said: “Unity and its members will not tolerate Tata’s aggressive tactics, and neither will the Labour Party. The union is now preparing to escalate industrial action in direct response to Tata’s threats.”
“The company is holding the country hostage while needlessly discarding thousands of workers. If Tata is not ready to do the right thing, a new Labour government should ensure it does.”
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A Tata Steel spokesman said the severance terms offered were “generous” and the company was “currently considering its legal options regarding the lawfulness of their vote.”
“The enhanced package will remain in place unless there is a labour dispute, in which case we will revert to the standard terms,” he added.
“Given the ongoing impact on our business, the potential for further disruptions and to ensure safe and stable operations, we are currently considering accelerating the schedule for the closure of Blast Furnace No. 5 and winding down of operations across our heavy oil fields.”
Under current plans, around 1,900 jobs are expected to be lost in Port Talbot.
A further 600 jobs are at risk of loss in other parts of the UK, with a further 300 predicted to lose over the next three years.
The Conservative Party did not respond to a request for comment.
