Steel: Still no gov’t strategy

Steel giant Tata’s Port Talbot steelworks is back in profit – but workers’ jobs still hang in the balance.

Just six months ago the plant – Tata’s biggest UK steelworks – was making a loss of £1m a day. Yet today (Monday August 22) it has been revealed that it made a profit of £5m in June.

The plant was put up for sale in March but a responsible buyer as demanded by steel unions is yet to be secured. Tata also confirmed that it is exploring a merger of its European operation (including its Dutch plant at Ijumuiden) with German steel and engineering company Thyssenkrupp.

Despite Port Talbot and other Tata workers remaining in the dark over the long term security of their jobs they have continued to work hard to boost the plant’s productivity and efficiency.

“Steel prices have risen all this year and are continuing to go up,” explained Mark ‘Pasty’ Turner, Unite SIMA branch secretary at Port Talbot.

“Raw materials are relatively cheap so we are selling steel for a higher profit,” he continued.

The exchange rate also currently works in the UK steel industry’s favour since it is sold in euros and bought in US dollars.

“We’ve lost 750 staff in Port Talbot,” said Turner. “And there are still thousands unsure of their future. Tata workers can’t get a mortgage. This is our lives and we are still in the dark,” he added.

Although Tata being profitable is of course good news, steelworkers remain deeply concerned for the UK’s steel future as the unstable situation could change at any minute.

“China continues to produce cheap steel and at some point it will flood the market again,” believes Turner.

Tony Burke, Unite assistant general secretary echoed Mark’s unease over Chinese steel production.

“We are still extremely concerned about the granting of market economy status to China sometime this year,” said Burke.

“China has not met any of the tests set out by the European Union to grant them economy status. The reality is that far from reducing output it has actually increased its output. It is still going to be a massive problem for the European market,” he added.

Steel prices could also collapse just as easily and it could all be at risk again.

“What UK steel needs is for Theresa May to put a proper strategy in place. Not just to protect our steel industry but the industries that we supply too,” said Turner.

“If UK manufacturing collapses there will be no demand for steel,” he added.

Commitment call

Unite has been calling for a serious commitment to UK steel and a proper industrial strategy for UK manufacturing from the Conservative government for months.

“News that Port Talbot is in profit is welcome and not surprising from our point of view,” said Burke.

“We had always said that it wouldn’t take too much for Tata at Port Talbot to move back into making a profit,” he added.

There’s no doubt that the workforce has made tremendous sacrifices to turn Port Talbot around.

“This is a highly skilled workforce absolutely dedicated to the wellbeing of the industry and their communities and we are standing all the way with them to make sure that Tata are held to account,” said Burke.

“They promised us that they will only sell to a reputable purchaser and we will hold them to that. It’s the least they owe the workforce,” he added.

There is also massive frustration at the lack of progress on the sale too. Tata decided to withdraw the remaining UK businesses from sale in July.

Little information

“Our main concern at the moment is the fact that there is very little information coming out of Tata senior management and the workforce is obviously very, very concerned not knowing where their future lies,” said Burke.

There have been suggestions of a tie up with German steel maker Thyssenkrupp.

“There is growing opposition from IG Metall (German metalworkers union) to a Thyssenkrupp and Tata tie up,” said Burke.

“Any merger would need guarantees and assurances on jobs, terms and conditions and investment but we are getting very little back from the company on this,” he added.

Unite continues to represent members along the lines that have been agreed by all the UK steel unions.

“We’ve got to protect employment, protect jobs and ensure that Tata only sells to a reputable buyer,” he said.

Unite believes steel is at the heart of UK manufacturing and an industry that cannot be left to wither.

“Theresa May has said that industrial strategy will be back on the agenda but we need to flesh out what that strategy actually is and where steel fits in.

“The steel unions have written to the new BEIS minister, Gregg Clark, seeking an urgent meeting with him about the UK steel crisis but there has so far been no reply. And we have asked for the UK Steel Council to be convened but there is no date in the diary. That is not acceptable to us and our members.”

“If the Tories are really serious about having an industrial strategy and sorting the UK steel crisis then they need to engage with the unions, roll up their sleeves and get on with meeting with our unions,” Burke added.