Engineering news
Tata Steel UK is to cut 1,050 jobs in the UK as part of cost-saving proposals, as it continues to battle an influx of cheaper material from abroad, particularly China.
The company will cut 750 jobs at its Port Talbot-based Strip Products UK business, 200 jobs in support functions and a further 100 jobs at steel mills in Trostre, Corby and Hartlepool.
The announcement comes on top of hundreds of other UK job cuts announced by the company last year.
Karl Koehler, chief executive of Tata Steel’s European operations, said: “I know this news will be unsettling for all those affected, but these tough actions are critical in the face of extremely difficult market conditions which are expected to continue for the foreseeable future.
“We need the European Commission to accelerate its response to unfairly traded imports and increase the robustness of its actions. Not doing so threatens the future of the entire European steel industry. And while we welcome progress on UK energy costs, the government must take urgent action to increase the competitiveness of the UK for its vital steel sector. This includes lowering business rates and supporting energy efficiency and anti-dumping cases so we can compete fairly.”
The company said it's regeneration arm UK Steel Enterprise will look at how it can provide more support to the local communities affected by the announcement and help stimulate new job creation in those areas.
Roy Rickhuss, general secretary of the Community union, said: “Today’s announcement is no reflection of the skills and commitment of the Tata Steel workforce, which has been breaking production records over the past year. Rather, it is yet another chapter of the UK’s ongoing steel crisis and the lack of a proper government response.
“This industry needs meaningful action from the UK government which up to now has been characterised by fast talking but slow delivery, despite persistent warnings from Community that delays in implementing support for steel would have an impact on jobs. Even now, promised compensation for energy intensive industries is yet to be received. The UK government must step up and work with trade unions and businesses to ensure this industry exists for generations to come.”
Rickhuss also called on Tata Steel to “make clear their long-term commitment to steel making in the UK”. He said: “The workforce has made significant sacrifices in recent years, on the assurance that jobs would be protected. However, rather than delivering on this promise, Tata have simply continued to slash jobs. Tata Steel must now come clean about their long term commitment to the UK.”
Gareth Stace, director of UK Steel, added: “The job cuts reinforce everything we have been saying about the importance of swift action by all involved to tackle the problems facing our steel industry. We have been dealing for some time with a toxic cocktail of conditions, from Chinese dumping of steel to the high cost of energy, and have warned that a strong and rapid response in the UK and, in Brussels, is required.
“It is clear that government, the workforce, unions and Tata must work closely together to ensure this important steel making plant has a strong and secure future. Management and employees must demonstrate through investment on the one hand and, a commitment to reduce cost and improve productivity on the other, that the plant has a viable future.”
Stace said the whole industry needs to be reassured that ministers and officials are doing everything possible to support the future of steel production.
“The government’s review of business rates could significantly reduce the multi-million-pound bill the plant has to pay while ministers should also consider offering grants that would help the site improve its long term sustainability. The government needs to be creative, co-operative and fleet of foot to make sure every possible option for support is considered,” he added.