Tata UK steelworks strike suspended: union

First furnace to be shut down under overhaul plan

By AFP

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Vehicles drive under a foot bridge displaying a banner in support of the UK Steel industry near to the Tata Steel Port Talbot integrated iron and steel works in south Wales. — AFP

Published: Mon 1 Jul 2024, 9:59 PM

A proposed strike next week at Tata Steel UK's sprawling Port Talbot steelworks in south Wales has been called off, unions said Monday, citing a resumption of talks with management.

The Indian-owned giant plans to start shutting the first furnace at the UK's biggest steelworks soon and the second by the end of 2024 under the overhaul, as it transitions to greener production.

The Unite trade union had announced in response that Tata staff would begin an indefinite strike from July 8 in protest over the job-slashing plans -- but this has now been suspended.

Britain's main opposition Labour party, widely expected to beat the governing Conservatives in a general election on July 4, had urged Tata to avert the strike.

"Unite... has today confirmed that its current industrial action at Tata in South Wales has been paused," the union said in a statement on Monday.

"The decision follows confirmation from Tata, arising from high-level talks throughout the weekend, that it was now prepared to enter into negotiations about future investment for its operations and not just redundancies, in South Wales, including at Port Talbot."

Unite general secretary Sharon Graham hailed a "breakthrough" over the matter.

"This is a significant development in the battle to protect jobs and the long-term future of steel making in South Wales. Investment from Labour secured by Unite will be key to the future of the site.

"This breakthrough would not have come about without the courage of our members at Port Talbot who were prepared to stand up and fight for their jobs.

"Workers were simply not prepared to stand idly by while steel making ended and their communities were laid to waste."

The ovens, which had initially been planned to shutter from July, are used to turn coal into coke, a key raw material used in the steel-making process.

Tata had revealed in January that it was planning to shut the coke ovens and two high-emission blast furnaces in Port Talbot, leading to the loss of up to 2,800 jobs.

The overhaul comes with the European steel industry facing upheaval as it tries to finance less carbon-intensive production.

Tata is seeking to invest £1.25 billion ($1.58 billion), including £500 million in UK government cash, into electric arc furnace technology to try to cut long-term carbon emissions.

The company said it would not now bring forward plans to shut one of furnaces early because of the walk-out threat, and would revert to its initial plan for discussions with unions on "future investments and aspirations for the business".