Tata Steel UK averts strike

Unite cited Tata’s preparedness to ‘enter into new negotiations on future investment’ in South Wales, including Port Talbot as the reason to ‘pause’ the strike. Tata later clarified the talk would not involve its decision to close down heavy end assets or a better separation package for workers

Calcutta, July 02, dmanewsdesk: Tata Steel UK will avert an industrial strike threatening to disrupt operations from July 8 after warring trade union Unite decided to back off following hectic parleys with the Indian company over the weekend.

Unite cited Tata’s preparedness to ‘enter into new negotiations on future investment’ in South Wales, including Port Talbot as the reason to ‘pause’ the industrial strike. Tata later clarified the talk would not involve its decision to close down heavy end assets or a better separation package for employees who will lose jobs.

Monday’s development also follows hardening of stand by Tata Steel on Friday threatening legal action against Unite, challenging the validity of the ballot that decided the industrial action. However, what may also sway the decision was Tata Steel’s unwavering stand to close both the blast furnaces at Port Talbot ahead of schedule in case of a strike.

Unite, one of three major trade unions in TSUK, are protesting Tata’s decision to close down blast furnaces at Port Talbot rendering 2,800 jobless. While one of the BFs will close down by the end of this week, the second is due for shut down by the end of September. Tata plans to build an environmentally friendly electric arc furnace replacing the BF with a government grant.

Unite general secretary Sharon Graham described the development as significant in the battle to protect jobs and the long-term future of steel making in South Wales, adding that investment from Labour secured by Unite will be key to the future of the site.

“It is essential that these talks progress swiftly and in good faith with the focus on fresh investment and ensuring the long-term continuation of steel making in South Wales,” Graham said in a statement.

In a late-night statement, Tata Steel said it has received written confirmation from Unite suspending strike from July 8 and current action which is short of strike. As a result, Tata will continue to operate one of the BFs till September as planned.

“The resumption of discussions with the UK Steel Committee will progress from the position reached in the last meeting of 22 May and will focus on the future investments and aspirations for the business, and not on a renegotiation of our existing plan for the heavy-end closure or the enhanced employment support terms,”

Members of other two major trade unions, Community and GMB, also had voted in favour of strike but they did not go through it. Tata had previously asked Unite to join Community and GMB unions in giving consideration to the company’s proposed memorandum of understanding, which puts forward a wide-ranging proposal including generous employee support packages, training, and skills development.

Unions are hoping the Labour party, which is tipped to win big in the UK parliamentary election on Thursday, will weigh upon Tata Steel UK and avert job loss. The Labour Party has promised a bigger booty to support ailing UK steel industry than the Conservative party, which is now in power. The Conservatives, led by Prime Minister Rishi Sunak, has offered £500 million in grant to TSUK for the green transition which will also call for £725 million fresh investment by Tata to build a 3 million tonne capacity EAF.

Source: The Telegraph online