Tata Steel UK begins legal action against union, fears plant closure

Tata Steel on Friday said it is being forced to commence legal action to challenge the validity of a steelworkers’ union strike ballot, as it warned that its blast furnaces at Port Talbot may have to pause operations amid the industrial action.

The Mumbai-headquartered steel major had originally planned to shut down one of the blast furnaces by the end of June and the second one by September. However, Unite the Union’s proposed strike from July 8 could result in the closure being forced earlier.

Following the announcement by the Unite Union to unilaterally call strike action from July 8, Tata Steel is unfortunately forced to commence legal action to challenge the validity of Unite’s ballot, a Tata Steel spokesperson said.

In the coming days, if we cannot be certain that we are able to continue to safely and stably operate our assets through the period of strike action, we will not have any choice but to pause or stop heavy end operations (including both blast furnaces) on the Port Talbot site. That is not a decision we would take lightly, and we recognise that it would prove extremely costly and disruptive throughout the supply chain, but the safety of people on or around our sites will always take priority over everything else, the spokesperson said.

The company again called for Unite to withdraw its industrial action and join the other unions Community and GMB in giving consideration to the company’s proposed memorandum of understanding, which it said puts forward a wide-ranging proposal including generous employee support packages, training, and skills development.

 

We understand the impact of our restructuring will have on many employees and contractors, but we remain committed to a just transition and pending a government-backed grant funding agreement to the 1.25 billion pounds investment in low-CO2 steelmaking, which will ensure Tata Steel has a long and sustainable future in the UK, the company’s spokesperson added.

Unite general secretary Sharon Graham claimed it is “fighting for the future of the steel industry” and wants things deferred until after the general election on July 4 as it claims to have secured “serious investment” from the Opposition Labour Party which is leading the pre-election surveys.

“Tata putting out a statement to shut or pause its blast furnaces three months earlier than they intended to is the latest in a long line of threats that won’t deter us. The Unite campaign is not about selling jobs, it’s about securing the long-term future of steel making in this country for thousands of workers in Port Talbot and South Wales,” she said.

First Published: Jun 28 2024 | 5:49 PM IST