‘On the same page’

Business secretary Savid Javid has met with unions, ministers as well as potential buyers of Tata Steel’s UK operations in a bid to save an industry that may be weeks away from collapse if urgent action is not taken.

Javid is set to meet Tata Group chairman Cyrus Mistry in Mumbai today (April 6) after speaking with unions leaders yesterday, who demanded that the business secretary seek assurances from India that Tata will act responsibly as it sells off its UK assets.

The meetings come as Unite reps for Jaguar Land Rover (JLR) wrote to Mistry yesterday (April 5) warning the Tata chairman against a “fire sale” of its UK steel operations, which includes Britain’s largest steel works in Port Talbot, where 4,000 jobs are on the line.

“We are alarmed to read comments in the press that the company is looking to dispose of its UK steel operations within a short period of time,” the Unite reps said in their letter to Mistry.

“This is not something that a responsible employer would seek to do, given any sale and the necessary arrangements and due diligence will take some considerable time,” they added.

The JLR reps demanded that Tata “allow sufficient time and resources to secure the business through a new buyer” and stressed the importance of selling the business as a whole entity instead of allowing investors to cherry-pick assets.

Currently Liberty House has emerged as the most visible potential buyer, after business secretary Javid met with the metals firm’s head Sanjeev Gupta to discuss a possible sale yesterday (April 5).

Gupta said the talks were “positive” and noted that the “UK government appears highly supportive and is proactively engaged in finding a long-term solution.”

Speaking before the meeting, Gupta noted that even though it may take years to make the business viable again, he believed it was entirely possible with government support.

When asked whether an overhaul of Tata’s Steel UK operations could be possible without job losses, Gupta said, “Yes, absolutely, that would be my intention.”

Other potential buyers are thought to have expressed interest, including investment firm Greybull –which is on the brink of securing a deal to buy Tata’s Long Products Division in Scunthorpe – as well as German industrial conglomerate ThyssenKrupp.

Javid’s meeting with Gupta was preceded by a meeting with steel unions, including Unite, the GMB and Community.

Good first step

Unite general secretary Len McCluskey praised the meeting as a “good first step”.

“At the moment we are on the same page,” he said. “The government needs to put a protective arm around the industry to show they are serious. Talk is cheap – we now need to see a practical application.”

Unite assistant general secretary Tony Burke criticised the government’s belated reaction to Tata’s shock decision last week to sell off its assets.

“It is clear that last week the government’s eye wasn’t on the ball,” he said. “It was a disaster. We have got to get the prime minister to intervene.

“There were more questions than answers last week,” Burke added. “Now we are looking for answers to the questions.”

The Rail Maritime and Transport (RMT) union stepped into the fray, urging the government to alleviate the crisis by bringing forward rail renewal work that benefits the steel industry.

“Britain’s rail infrastructure is under massive pressure and is creaking under passenger demand and it would be a win-double for the British taxpayer to see the bringing forward of rail renewals work benefiting UK steel at this pivotal time for the industry,” said RMT general secretary Mick Cash.

“There is no excuse for the government dragging its heels as they control the publicly-owned Network Rail and could intervene right now to make a decisive move that would have huge long-term benefits for the twin industries of rail and steel,” he added.

Wales first minister Carwyn Jones also piled on the pressure on the government after having a separate meeting with prime minister David Cameron and chancellor George Osborne.

Jones said he was heartened that the prime minister said that ‘nothing would be off the table’ in seeking a solution to the steel crisis.

“If the UK government needs to take over Tata’s assets in the short term to enable a sale process to take place then that’s something the UK government should consider,” Jones said.

“What’s important now is we carry on working to make sure the jobs we have in steel in Wales, and indeed the jobs in England, can be preserved for the future.”

“Steel is a strategic industry for the UK – we can’t imagine being a major industrial economy if we don’t make our own steel.”

Noting that the Welsh government was prepared to offer more than the ÂŁ60m support package that was already on the table, Jones highlighted that the government must step up.

“We don’t have the resources of the UK government – their resources are far bigger than ours so there would need to be a substantial package put in place by the UK government as well,” he said.

Jones echoed Unite in calling for Tata to be a responsible company as it divests its assets.

“Tata have a good reputation worldwide, they will not want to lose that, and they will ensure that as a responsible seller.

“We don’t have all the time in the world, that’s true, but we will now work quickly to ensure that any potential deal is done,” he added.

“My message to the Prime Minister was simple – these plants cannot close.”

Welsh govt praised

Unite rep and Port Talbot steelworker Mark Turner praised the government in Wales for offering support as the steel crisis pummels the nation.

“The Welsh government is actually doing something – it has offered the £60m support package and is prepared to do more,” he said.

“It’s very encouraging, too, to see that governments are now starting to work together,” he added, commenting on the meeting between the first minister, prime minister David Cameron and chancellor George Osborne.

“But we have yet to see action from the UK government – it must step up and offer support in the same way that that the Welsh government has done to see us through this crisis.

Turner said that while steel workers were heartened by talks aiming to find a buyer for Tata Steel’s business, they were wary of any deal that would do away with Port Talbot’s blast furnace.

“We’re unsure about Liberty House’s intentions for the long game since they indicated they would aim to replace the blast furnace with arc furnaces.”

While blast furnaces produce new steel using melted iron ore, arc furnaces, which are powered by electricity, essentially only recycle scrap metal.

“The blast furnace is the heart and soul – the dragon’s breath, if you will – of the Port Talbot steelworks. Shutting down blast furnaces would mean the end of true steelmaking in the UK as we know it.”