Tata job losses could have been avoided claims Made in Yorkshire

By Pressvine Worldwide
schedule23rd Jul 15

The firm said the business had been underperforming in the face of steel imports due to the strong pound and higher electricity costs which it said were double those of European competitors.

Tata said it had "identified 720 positions which will potentially become redundant" but with work with unions and employees to redeploy workers and minimise the number of compulsory redundancies.

Karl Koehler, chief executive of Tata Steel's European operations, said: "I realise how distressing this news will be for all those affected, but I am also extremely aware of our responsibility towards the ongoing survival of this business which will continue to employ about 1,500 people in South Yorkshire."

Jason Pitt, Made in Yorkshire said, "The reasons Tata have given, are partially allowing the business to divert blame and have largely ignored other market factors.

"There should be a debate about how UK companies can overcome the exchange rate which is affecting the industry and even more important than that is the emergence and growth of aluminium usage, which UK firms are poorly positioned to take advantage of.

"JLR for example are now world leaders in aluminium technology, this is because of weight savings and improved safety and dynamics, a move that other automotive companies will follow.

"Now is not the time for Tata to close sites but rather a time for further investment to be able to facilitate the growth in aluminium."

Roy Rickhuss, general secretary of trade union Community, said: "This will be devastating news for our members.

"This is a business that has seen a lot of restructuring and change over recent years and another round of potential redundancies will hit the workforce hard.

"It will be natural for workers to be sceptical about this plan too as commitments given by the same management team in previous restructurings have not been delivered.

"We will give our members every support in the coming weeks and months and will oppose any compulsory redundancies.

"We will also engage independent experts to study Tata Steel's proposals and look at alternatives that could save jobs and create a sustainable business. It's only right and proper that Tata Steel allows sufficient time for that work to be carried out.

"While we still need to study the full rationale behind today's announcement, it is clear the UK steel industry is in a perilous state and as the biggest producer, Tata Steel is particularly affected. There is already a case for government action.

"We have been saying for years that uncompetitive UK energy costs are damaging the UK steel industry."

Today's announcement comes a month after plans for a strike by thousands of workers at Tata Steel, at sites around the country - in a long-running row over pensions - were suspended.

Responding to Tata's announcement, Prime Minister David Cameron's official spokeswoman said: "We are committed to doing all we can to keeping energy prices down for consumers and businesses.

"That was one of the reasons why under the last parliament we took steps, and the Competition and Markets Authority came out with their report last week looking at that.

"We've said we will look at what they say and respond in due course."

Raising a point of order in the House of Commons, Labour MP Stephen Doughty described the job losses as "devastating news" for the steel industry.

UK Steel director Gareth Stace said: "The sector is facing a potent cocktail of high energy costs, a strong pound and over-capacity in competitor countries.

"Whilst factors such as currency are out of our control, we simply cannot afford to keep overloading our companies with energy costs which in some cases are almost double those faced elsewhere, otherwise this is the result we will see."

Leader of Rotherham Council Chris Read said the announcement was a huge blow to the workers, their families and the borough in general.

He said: "Clearly this is a very difficult time for the workers and their families at Tata Steel and our thoughts are with them.

"I have spoken to staff at the council today and we will do all we can to work with the company and other partners to assist and to co-ordinate a partnership response to the job losses in an effort to keep people in employment and support those who may have to move on."

John Healey, Labour MP for Wentworth and Dearne said: " This is the worst possible news. It's simply devastating for the workers and their families, many of whom waived pay, holidays and other entitlements to help keep Tata going through the global economic crisis from 2008. They kept faith in Tata and now feel massively let down.

"This is a dedicated workforce and a modern plant, making some of the best steel in the world. I want to see independent industry experts assess this plan and make sure every other option has been fully considered. I fear cuts to steel-making on this scale would leave our Rotherham site with no long-term future."

Mr Healey said: "I 've talked to union leaders and local Tata managers about this, and I have asked for an urgent meeting with Dr Karl Kohler, Tata's MD in Europe.

"I've also asked for an urgent meeting with business ministers because the Government should be doing more to support UK steel as a vital strategic industry. We won Government agreement to financial help for energy intensive manufacturers in the last parliament but ministers have still not set up this scheme. And there's much more ministers can do through government procurement contracts, support for skills and backing for research.

"Cutting jobs on this scale will be devastating to the town. Rotherham is proudly part of Britain's manufacturing base. When Maltby pit closed last year Rotherham became an ex-mining town and I'll fight to stop us also becoming an ex-steel town."

Rotherham MP Sarah Champion (Labour) said: "I am deeply shocked and disappointed by the announcement from Tata regarding bar production closing in Rotherham.

"This is not just about losing 720 jobs, it's about the impact on 720 families and 720 wage packets no longer going into the local economy.

"I have consistently challenged the Government to address the inequality that British Steel faces against the rest of Europe with higher energy prices and business rates up to 10 times greater. The Chancellor promised a report into this by 2016. Today shows that is too little too late.

"I will continue to do all I can to make sure the Government fully supports the affected workers and I will push Tata to continue to offer training so that workers can re-train in specialist steel which will still be produced in Rotherham."