Rescue plan agreed

Steelworkers have agreed to accept a temporary three per cent pay cut and changes to terms and conditions as part of a rescue plan by Greybull Capital, the company buying Tata’s Long Products business.

 

Steelworkers from all three steel unions have voted to accept the rescue plan which will secure up to 4,400 jobs and the future of UK steel.

 

Members of Unite, Community and the GMB unions last night (April 19) concluded a consultative ballot on temporary changes to terms and conditions as part of the deal to sell Tata’s Long Products business to Greybull.

 

“Unite recognises that this will have been a difficult decision for many, but by agreeing to make these short-term sacrifices members have secured a future for steelmaking in Scunthorpe and the long product division’s other sites,” said Harish Patel, Unite national officer for steel.

 

British Steel

 

Tata agreed to sell its Long Products division to Greybull earlier this month. It will be rebranded as British Steel.

 

The company is still looking for a buyer for the rest of its UK business, including the Port Talbot plant which employs 4,000 steelworkers.

 

There have been talks of a worker-backed rescue bid put forward by manager Stuart Wilkie but so far no more details of this have emerged.

 

Unite says government ministers need to make sure that the sacrifices by Tata workers are not being made in vain by taking decisive action to support the steel industry and allowing steelworkers to compete on a level playing field with their global competitors.

 

“This means government ministers backing up their warm words with action to compel contractors working on defence and infrastructure projects such as HS2 to use British steel,” said Harish.

 

“Ministers also need to step up action to tackle the dumping of cheap imports and go further with help on high energy costs, otherwise steelworkers will be left fighting with one hand tied behind their backs,” he added.

 

The sale will safeguard steelworks in Scunthorpe, two mills in Teesside and an engineering workshop in Workington.

 

“We hope that Greybull Capital can now finalise the deal with Tata Steel UK and look forward to working with the company to make sure the new ‘British Steel’ has a bright and successful future,” added Harish.