Tata Steel cuts 1,050 UK jobs

TATA STEEL is cutting 1,050 jobs from its UK operations – 750 from its site in Port Talbot, 200 in support roles across the UK, and a further 100 from steel mills in Trostre, Corby and Hartlepool.

The plans are designed to save money and increase the competitiveness of the company in the UK. The cuts are the latest in a series in the UK by Tata, which blames the continued fall of the steel price in Europe, caused by “a flood of cheap imports”, largely from China, as well as high energy costs. In July last year, the company cut 720 jobs, most of these in Rotherham, while in October, it cut a further 1,200, 900 of which were in Scunthorpe, with 270 across several plants in Scotland.

The company will now begin a full consultation with employees. Stuart Wilkie, director of Tata subsidiary Strip Products UK, said that the company will redeploy employees where possible and “look to minimise employee hardship”.

Tata Steel Europe CEO Karl Koehler called on the European Commission to accelerate its response to unfairly traded steel imports, and said that failure to do so would threaten the entire European steel industry. He also asked the UK government to lower business rates and support energy efficiency to preserve the “vital” steel industry.

“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,” said Koehler, adding: “Tata Steel has been a hugely supportive investor, and has invested £1.5bn [US$2.1bn] in its UK operations. We now need all stakeholders to do their utmost to meet the unprecedented challenges the steel sector is facing.”

Koehler’s comments have been echoed by industry groups and unions. Emma Watkins, the Wales director of the Confederation of British Industries (CBI), joined Koehler in calling on the European Commission to “urgently” report back on whether steel markets are being unfairly distorted by excess market supply.

Roy Rickhuss, general secretary of Community, the union representing steelworkers, accused the UK government of being a a cheerleader for China and its bid for ‘market economy status’, despite evidence that the “dumping” of cheap Chinese steel in UK markets had contributed to the crisis. He said government action has thus far been “characterised by fast talking but slow delivery”. He rounded too on Tata itself, however.

“As well as government support, it is absolutely vital that Tata Steel make clear their long-term commitment to steel making in the UK. 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,” he said.

The news of the job losses has been met with dismay from government representatives. Welsh first minister Carwyn Jones said that the news is a “severe blow” to both the communities in Port Talbot and Trostre, which are in Wales, and the UK steel industry, and called on the UK government to take “swift and decisive action”.

“For years I have joined Welsh steel makers in lobbying the UK government about exorbitant energy prices in Britain. This issue should have been grasped years ago but we must now see urgent implementation of energy support measures for steel producers. Steel making is a strategic asset for the United Kingdom and we now urgently need a national UK Strategic Plan for the industry’s future,” he said.

He believes plans should address energy costs, security of supply, state aid and the influx of low-cost steel from outside the UK.

The UK secretary of state for Wales Stephen Crabb said that the UK government will “keep doing what it can” to support the steel industry, and that it would make affected workers and their families a priority.