‘Deliver our plan’

Steel unions emerged from today’s (April 4) meeting at TUC headquarters in London with specific steps the government can take now to save the steel industry.

The meeting was attended by one hundred steelworkers from across the UK to formulate a plan for their industry following Tata Steel’s surprise decision to divest its UK assets.

The plan includes demanding that the government take immediate action to guarantee production of Tata Steel’s UK operations so that customers are not lost following Tata Steel’s announcement.

Unions have also called on the government to work to ensure the integrity of the business – SSI has shown that a blast-surface only operation in the UK is not sustainable. Allowing Tata or other investors to cherry-pick assets will put steelmaking at risk.

Finally, unions outlined concrete steps that the government can take within European rules to support the business in its journey towards self-sustainability.

The plants, unions emphasised, are entirely viable but they require investment, which is estimated to be ÂŁ1.5bn over 10 years. This level of investment should be achievable given that any buyer would be gaining control of assets worth ÂŁ4bn.

But government support is necessary in order to bridge the two to three years that it will take before the business is stable again.

Government support that will not run afoul of EU restrictions include green investment in a new power plant, the coke ovens and the blast surface to transform Port Talbot into a world class example of low-carbon blast furnace steelmaking.

The government can also offer support by investing in research and development to enable the business to develop high value products that can secure new markets.

Finally, the government can offer support in investment in skills to support the transition to high-value, low carbon steel production.

Steel unions’ plans will be further developed as they work together with expert steel industry advisors Syndex UK.

“Steelworkers are united in their view of what the government must do,” said Unite national officer Harish Patel, speaking after this afternoon’s meeting. “This business should have a future but it needs immediate action to reassure customers and protect the integrity of the business.

“We don’t want to hear more warm words from ministers,” he added. “We want government to work with us to deliver this plan, invest in the future of steel making and protect the jobs of thousands of steelworkers across the UK.”