Union fury as Tata closures to hit hundreds of jobs

Tata Steel has announced plans to close two UK operations, blaming a failed sale process.

The steelworkers’ union accused the company, which employs around 8,000 staff in the country, of “breaking its commitments” to the workforce through the proposed closure of the Orb Electrical Steels business at Newport, South Wales.

The company said the loss-making business, which supplies electrical steels for vehicles, had not attracted a buyer and all 380 staff faced redundancy.

It added that all 26 roles were to go at its Wolverhampton Engineering Steels Service Centre for the same reason.

The firm had put a series of non-core businesses on the market as the industry battles tough competition from China and the effects of the global economic slowdown.

The future of the Port Talbot steelworks in South Wales was thrown into doubt in May when Tata Steel and Thyssenkrupp abandoned joint venture talks.

Henrik Adam, chief executive of Tata Steel’s European operations, said: “Today’s proposal will be sad news for colleagues at Orb in South Wales.

“This is necessary, enabling us to focus our resources, including investment, on our core business and markets, helping us build a long-term sustainable future in Europe.”

He added: “Continuing to fund substantial losses at Orb Electrical Steels is not sustainable at a time when the European steel industry is facing considerable challenges.

“We saw no prospects of returning the Orb business to profitability in the coming years.

“I recognise how difficult this news will be for all those affected and we will work very hard to support them.”

Roy Rickhuss, general secretary of the Community union, accused the company of reneging on job guarantee agreements.

He said: “There has been no consultation about this proposal either at UK or European level and company management should hang their heads in shame in the way this has come about.

“This is of course extremely devastating news for the workers affected, but all Tata Steel workers should be concerned by the way Tata is breaking its commitments.

“We are opposed to plant closures and compulsory redundancies and therefore the company should be aware that we will be considering all options, up to and including industrial action, in defence of our members’ livelihoods.

“We also call on the government to intervene. Ministers were closely involved in securing commitments from Tata over the future of the business.

“At a time when the government wants to decarbonise the economy and support a switch to electric vehicles, losing the UK’s only producer of electrical steels would be a grave error.”

(c) Sky News 2019: Union fury as Tata closures to hit hundreds of jobs