{"id":8358,"date":"2016-04-11T17:17:12","date_gmt":"2016-04-11T16:17:12","guid":{"rendered":"http:\/\/unitelive.org\/?p=8358"},"modified":"2016-04-12T10:32:06","modified_gmt":"2016-04-12T09:32:06","slug":"british-steel-is-back","status":"publish","type":"post","link":"https:\/\/unitelive.test.igniteamt.com\/?p=8358","title":{"rendered":"British Steel is \u00e2\u20ac\u0098back\u00e2\u20ac\u2122"},"content":{"rendered":"
<\/div>\n

British Steel has made a comeback in Scunthorpe, after the sale of Tata\u00e2\u20ac\u2122s Long Products Division in Scunthorpe was officially agreed this morning (April 11) and new owner, investment firm Greybull, confirmed its intention to rename the business after the iconic government-backed British steel producer.<\/p>\n

 <\/p>\n

About 4,400 jobs in the UK \u00e2\u20ac\u201c which hung in the balance for months as negotiations took place \u00e2\u20ac\u201c have now been saved following the sale.<\/p>\n

 <\/p>\n

The deal will mean that the entire Long Products business in Europe, which includes a steelworks in Scunthorpe, two mills in Teesside, an engineering workshop in Workington, a design consultancy in York as well as a mill in France will also be saved.<\/p>\n

 <\/p>\n

The Long Products business makes steel for use in rail and construction projects.<\/p>\n

 <\/p>\n

Investment firm Greybull has said it is arranging a \u00c2\u0141400m finance and investment package, mostly funded by a combination of banks and shareholders, which will \u00e2\u20ac\u015bfund working capital and future investments.\u00e2\u20ac\u0165<\/p>\n

 <\/p>\n

An additional \u00c2\u0141100m in loans from the government is also said to be offered to support the business.<\/p>\n

 <\/p>\n

Greybull partner Marc Meyohas said he wanted to personally thank the company, British and French governments and trade unions for their support, which, he noted, \u00e2\u20ac\u015bwas essential in ensuring the agreement\u00e2\u20ac\u0165.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bWe are now focused on taking the deal to completion in order that the business can start its next chapter with confidence,\u00e2\u20ac\u0165 he said.<\/p>\n

 <\/p>\n

Greybull specialises in turning around companies in financial trouble \u00e2\u20ac\u201cthe investment firm took on airline Monarch, which had posted a loss of \u00c2\u014194m in 2014, and under its management, returned a \u00c2\u014140m profit the following year.<\/p>\n

 <\/p>\n

Executive director of Tata\u00e2\u20ac\u2122s Long Products division Bimlendra Jha paid tribute to the workforce.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bThis sale is the best possible outcome for employees who have worked relentlessly to ensure the business\u00e2\u20ac\u2122s survival, and helped to make it attractive to a potential buyer,\u00e2\u20ac\u0165 Jha said.<\/p>\n

 <\/p>\n

Government must support<\/em><\/strong><\/p>\n

But Unite has warned that the new deal will secure a viable future for Scunthorpe steelworkers only if the government plays a strong and continuing role in supporting the beleaguered steel industry.<\/p>\n

 <\/p>\n

The remaining steel workforce in Scunthorpe has made substantial sacrifices as part of the deal \u00e2\u20ac\u201c they are now being balloted to accept a 3 per cent pay cut for one year and changes to their pensions.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bIt should not be forgotten that many workers have already lost their jobs at Scunthorpe and those that remain are making huge sacrifices with their pay and pensions to secure their jobs,\u00e2\u20ac\u0165 said Unite convenor for Tata Steel Scunthorpe Martin Foster.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bUnite is asking our members to back the deal, but government ministers must now play their part too,\u00e2\u20ac\u0165 he added. \u00e2\u20ac\u015bThe government cannot now leave Scunthorpe\u00e2\u20ac\u2122s steelworkers high and dry and must take decisive action to allow them to compete on an even playing field with their global competitors.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bThis means supporting steelworkers by ensuring infrastructure such as HS2 and defence projects are built with British steel, as well as tackling the dumping of cheap imports and high energy costs, which is leaving steelworkers fighting with one hand tied behind their backs.\u00e2\u20ac\u0165<\/p>\n

 <\/p>\n

Foster added that, although the deal is not \u00e2\u20ac\u015bsigned, sealed, delivered\u00e2\u20ac\u0165 quite yet \u00e2\u20ac\u201c a handful of agreements need to be confirmed before the sale is completely finalised \u00e2\u20ac\u201c the affected steel workers and their communities can now \u00e2\u20ac\u015bbreathe a sigh of relief\u00e2\u20ac\u0165.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bWith this sale we can now see the light of the end of the tunnel,\u00e2\u20ac\u0165 he noted.<\/p>\n

 <\/p>\n

Foster said that the company has given assurances that there would be no need to make further changes to pay, terms or conditions in the future beyond what\u00e2\u20ac\u2122s laid out in the current proposal.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bWe\u00e2\u20ac\u2122ll have to wait and see, but Greybull has given us confidence that we have a long-term, profitable future with them,\u00e2\u20ac\u0165 he said. \u00e2\u20ac\u015bThey\u00e2\u20ac\u2122ve said that there\u00e2\u20ac\u2122s no reason that the business cannot be successful.\u00e2\u20ac\u0165<\/p>\n

 <\/p>\n

\u00e2\u20ac\u0098World class workforce\u00e2\u20ac\u2122 <\/em><\/strong><\/p>\n

Unite assistant general secretary Tony Burke noted that the sale and purchasing agreement was a \u00e2\u20ac\u015btestament to the commitment of a world class workforce.\u00e2\u20ac\u0165<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bIt demonstrates that steel production can have a future here in the UK and that given a fighting chance it can be profitable,\u00e2\u20ac\u0165 he said. \u00e2\u20ac\u015bThe workforce is making great sacrifices and we expect Greybull to stand by assurances that it is in it for the long-term.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bWhile the future of the Scunthorpe workforce looks more secure, we should not overlook the uncertainty and turmoil the rest of Tata Steel UK\u00e2\u20ac\u2122s workers find themselves in,\u00e2\u20ac\u0165 Burke added.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bWith the sale process for the rest of Tata\u00e2\u20ac\u2122s steel operations starting today, steelworkers across the remaining sites expect Tata to live up to its assurances that the business will be sold as a whole to a responsible buyer.\u00e2\u20ac\u0165<\/p>\n

 <\/p>\n

So far, the only company which has publically declared an interest in acquiring the rest of Tata\u00e2\u20ac\u2122s UK business, officially up for sale today (April 11), is metals firm Liberty House \u00e2\u20ac\u201c but business secretary Sajid Javid said other potential investors have also come forward.<\/p>\n

 <\/p>\n

The search for a buyer has begun in earnest as tens of thousands of jobs in Wales and throughout the UK are under threat if the remaining Tata sites now up for sale were to close. In Port Talbot alone, 4,000 jobs and the future of an entire community are on the line.<\/p>\n

 <\/p>\n

Unite has argued that the steel industry now in turmoil can be stabilised through specific government measures.<\/p>\n

 <\/p>\n

These include ministers throwing UK steel a financial lifeline and backing investment to get it through these tough times and creating an even playing field by dropping opposition to European Commission proposals to slap higher tariffs on cheap Chinese steel.<\/p>\n

 <\/p>\n

Unite also wants ministers to taking swift action on sky high energy costs so that UK steelworkers can compete on a level playing field with their European counterparts, as well as compelling British steel to be used in British infrastructure such as HS2 and defence projects.<\/p>\n

 <\/p>\n

Foster said that, despite the successful deal between Greybull and Tata\u00e2\u20ac\u2122s long products division, its future, along with the future of the entire industry, is still dependent on government support.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bThe survival of the steel industry is firmly in the hands of number 10,\u00e2\u20ac\u0165 he said. \u00e2\u20ac\u015bThis isn\u00e2\u20ac\u2122t just about Scunthorpe \u00e2\u20ac\u201c this is about steel communities throughout the UK.<\/p>\n

 <\/p>\n

\u00e2\u20ac\u015bThe government needs to wake up \u00e2\u20ac\u201c on Chinese dumping, business rates, procurement and other forms of support for the steel industry,\u00e2\u20ac\u0165 he added. \u00e2\u20ac\u015bEven at this late stage in the steel crisis, they still remain standoffish; they need to take action and they need to do it fast before it\u00e2\u20ac\u2122s too late.<\/p>\n

 <\/p>\n

The business secretary is expected to make an announcement in the House of Commons today (April 11) updating MPs on the latest in the steel crisis.<\/p>\n

 <\/p>\n

Stay tuned on UNITElive for more updates on steel.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

British Steel has made a comeback in Scunthorpe, after the sale of Tata\u00e2\u20ac\u2122s Long Products Division in Scunthorpe was officially agreed this morning (April 11) and new owner, investment firm Greybull, confirmed its intention to rename the business after the iconic government-backed British steel producer.   About 4,400 jobs in the UK \u00e2\u20ac\u201c which hung […]<\/p>\n","protected":false},"author":1,"featured_media":4256,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[430,269],"wps_subtitle":"Tata Long Products workers \u00e2\u20ac\u0098breathe a sigh of relief\u00e2\u20ac\u2122 ","_links":{"self":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/8358"}],"collection":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8358"}],"version-history":[{"count":1,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/8358\/revisions"}],"predecessor-version":[{"id":8359,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/posts\/8358\/revisions\/8359"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=\/wp\/v2\/media\/4256"}],"wp:attachment":[{"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unitelive.test.igniteamt.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}