Tag: Community

Tata Steel Workers Vote for Industrial Action Amid Threat of Blast Furnace Closure

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Port Talbot works

507 words, 3 minutes read time.

Tata Steel workers in Port Talbot, members of the Unite union, have taken a significant step by voting for industrial action. The dispute centres around Tata’s plans to replace blast furnaces with electric arc furnaces (EAFs), a move that could result in the loss of thousands of jobs.

Tata Steel, an Indian-owned company, aims to close blast furnaces in Port Talbot and Llanwern. The proposed shift to EAFs would lead to the loss of 2,500 jobs in Port Talbot and 300 jobs in Llanwern. Port Talbot steelworkers have campaigned for an integrated electric and blast furnace system throughout 2023, but this marks the first strike in over 40 years.

Unite Wales regional secretary, Peter Hughes, condemns Tata’s actions as “devastating industrial vandalism”. Tata allegedly used tactics such as bribes and threats to discourage members from taking industrial action. Unite remains resolute, emphasizing the impact on the Welsh economy and the UK’s national interest.

EAFs vs. Blast Furnaces

EAFs produce steel from scrap, not the quality virgin steel derived from raw materials that industries like rail, aerospace, and automotive sectors require. Blast furnaces, fuelled by coal and coke, provide the essential raw material for these critical industries. Pat Harrington, General Secretary of Solidarity union says:

“The shift to EAFs poses a threat to Britain’s industrial sovereignty, especially as steel demand is expected to rise significantly in the coming years. Tata is guilty of hypocrisy regarding emissions. While cutting British jobs, the company is simultaneously opening new blast furnaces in India.
Their motives appear profit-driven rather than environmentally conscious.“

“The closure of blast furnaces in Port Talbot, along with similar proposals at the Chinese-owned British Steel plant in Scunthorpe, would leave the UK as the only G20 economy without the ability to make steel from scratch,”

Tata has questioned the regularity of Unite’s strike ballot, but this has not deterred fellow union members. Members of Community, who work in blast furnaces, will hold their own strike ballot. They accuse Tata of pursuing “decarbonization on the cheap”. The untested nature of EAFs raises concerns, as closure of all blast furnaces could lead to a 3-year production pause. Semi-finished steel slabs may need to be imported before EAFs become operational in 2027.

A Unite petition, signed by 30,000 people, calls for greater support for steel and the use of UK steel in domestic projects. Corby, once home to Europe’s largest integrated steel-making plant, has seen a decline in steel employment since the 1970s and 1980s. Meanwhile, British Steel (Chinese-owned) secures a contract to supply rail tracks for Egypt’s electrified mainline and freight network.

British Steel plans to demolish its blast furnaces, with EAFs operational only by late 2025. The Scunthorpe-based company’s contract for Egypt’s rail route highlights the stakes for the UK steel industry. In summary, the battle over steel production and jobs continues, with workers and unions standing up against Tata’s plans. The outcome will shape the future of Britain’s steel industry and its role in global markets.

Picture credit: By Chris Shaw, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=9173765

Government nationalises steel company

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More than 600 steel-making jobs at Sheffield Forgemasters have been secured following the decision to nationalise the company. The takeover by the Ministry of Defence also secures the supply chain for high-quality steel for the next generation of Britain’s defence investment programmes.

The government stated that Forgemasters is the only available British manufacturer with the skills and capability to produce large scale high-integrity castings and forgings from specialist steels in an integrated facility to the highest standards required for these programmes. It will invest around £400 million in the company over the next decade.

The company specialises in forged and cast steel components for the defence, engineering, nuclear, offshore, petrochemical, and steel processing industries worldwide. Forgemasters will continue to operate in areas outside of defence.

Roy Rickhuss, general secretary of steel union Community, said: “We know with the right framework of support our industry has a bright future at the core of a low carbon economy, so we are pleased to see some much-needed investment going into Sheffield Forgemasters to provide long-term security.

“We see this move as a recognition of the importance of the steel industry to our country’s economic future. The pandemic has shown us the danger of relying on fragile overseas supply chains, so we are pleased to see a viable future secured for Sheffield Forgemasters.”

Steve Turner, assistant general secretary of manufacturing union Unite, said: “Critical infrastructure industries like steel function better in public hands and advanced economies like our own need to have stable, secure domestic steel production capabilities to protect our national security interests as well as to compete in global markets.“