Domino effect

Steel firm Caparo Industries has today (Monday October 19) announced it is going into administration putting 1,700 jobs at risk.

 

Unite described the news as ‘yet another hammer blow’ to jobs and livelihoods.

 

“This is yet another hammer blow for steel and manufacturing communities across the UK already reeling from the closure of Recar and job losses at Tata steel,” said Tony Burke, Unite assistant general secretary.

 

The news comes ahead of tomorrow expected announcement by Tata about the future of its long products division and follows the closure of SSI in Redcar with the loss of 2,200 jobs.

 

Unite has renewed its calls for the government to urgently step in to support the UK steel industry.

 

“Government ministers need to ask themselves – how many more steel firms need to go to the wall before they step in and support the UK’s steel industry,” added Tony.

 

Caparo Industries staff are highly skilled and work hard to produce world class products.

 

“We believe that the company has a future and will be working with Caparo’s administrators doing everything in our power to save jobs,” said Tony.

 

Tony went on to say that failure to act urgently could lead to a ‘domino effect’ taking hold across the industry and the loss of more skilled jobs.

 

“The government’s ‘March of the Makers’ and ‘Northern Powerhouse’ will become meaningless rhetoric, of it fails to act swiftly and the livelihoods of thousands of people left in tatters,” added Tony.

 

Approximately 80 per cent of Caparo’s workforce is based in the West Midlands.