Unions are expressing fears of a significant job cut announcement at the UK's largest steelworks on Friday, as part of plans to transition to "greener" steel production.
Tata, the owner of Port Talbot steelworks in south Wales, has been engaged in discussions with the government for several months regarding state aid, which could amount to hundreds of millions of pounds. The aim of this financial support is to facilitate the transformation of the plant's two coal-fired blast furnaces into electric arc furnaces capable of running on zero-carbon electricity.
Unions are apprehensive that this shift could result in the loss of approximately 3,000 jobs, primarily at the Port Talbot facility.
Ministers are expected to justify the deal as a means of ensuring the plant's survival, as it employs half of Tata Steel's 8,000-strong workforce.
Tata had previously warned that its UK operations were at risk unless it secured government funding to transition to less carbon-intensive electric arc furnaces.
Unions have raised concerns about being excluded from the negotiations surrounding the agreement. Charlotte Brumpton-Childs, GMB national officer, expressed her dissatisfaction, stating that "Government intervention in the steel industry is long overdue, but imposing a program without proper worker consultation is unacceptable." She emphasized the importance of a long-term perspective on steel decarbonization and the potential negative impact on jobs.
Alun Davies, national officer for the Community union, echoed the need for comprehensive consultation on decarbonizing steel production and securing the future of all UK plants.
Dr. Simon Cran-McGreehin, head of analysis at the Energy and Climate Intelligence Unit (ECIU), questioned the deal's potential impact on jobs, suggesting that a more extended vision, including hydrogen-based steel production, could protect more employment opportunities.
Gary Smith, general secretary of the GMB union, expressed concern over the potential consequences of the deal, describing it as devastating for jobs and workers. He stressed the importance of workers' involvement in plans to modernize the steel industry, emphasizing the need for a functional domestic steel sector for national security.
The proposed transition raises both hopes for greener steel production and concerns about the immediate and long-term implications for employment in the steel industry, particularly in the Port Talbot community. Photo by Chris Shaw, Wikimedia commons.