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Friday, May 10, 2024

WALES 

Tata steelworkers at Community union vote for strike action over job cuts

Thousands more steelworkers vote for strikes over plans to axe thousands of jobs and Port Talbot furnace closures



Members of the UK’s largest steelworkers’ union have become the latest Tata steelworkers to vote for industrial action over plans to cut thousands of jobs amid Port Talbot furnace closures.

More than 3,000 members across all Tata Steel UK production sites were balloted for strike action by the trade union Community. It followed plans by Tata to shut both its blast furnaces at Port Talbot in south Wales with plans to axe 2,800 jobs.

According to the union more than 85% of members who were surveyed voted in favour of industrial action. Port Talbot steelworkers have previously warned politicians of “destitution” for the local area if their jobs are not protected.

Tata Steel plans to replace the Port Talbot’s blast furnaces with greener steelmaking and construct an electric furnace in the summer of 2025 with the UK government contributing £500m towards its cost, while Labour has committed £3bn to the UK steel industry.

The company has said it was losing £1m a day under current operations, however it was recently revealed that the owner of Tata Steel UK raked in £3bn in profits last year.

National officer for steel at Community, Alun Davies, said: “Today our members delivered their verdict on Tata Steel’s job cuts plan, and they have voted to demand a better deal for the workforce.

“It should be noted this resounding mandate has been delivered in spite of the company’s bullying and unacceptable threats to slash redundancy payments.

“We will now be consulting our members on next steps, and we urge Tata to reconsider their position and get back around the table to head off a major industrial dispute.”

Around one month ago members of Unite the union voted to take industrial action over the job cuts, with regional secretary for Unite Wales describing the proposals as “devastating industrial vandalism”.

Unite General Secretary Sharon Graham said that, not since the 1980s have steel workers voted to strike in this way.

Members of the GMB union have also been balloted for industrial action and the trade unions could coordinate action if their members supported this move. Community union said it will be consulting its 3,000 members on next steps.

Hannah Davenport is news reporter at Left Foot Forward

What’s Really Going on with the Teamsters and with TDU?


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 MAY 9, 2024

As Shawn Fain has acknowledged, Teamsters for a Democratic Union helped to inspire and provide a model for the Unite All Workers for Democracy (UAWD) caucus and for the United Auto Workers membership more generally. TDU’s more than forty-year history of rank-and-file organizing, opposition to corrupt union officials, and struggles for union democracy and alternative leadership provided the playbook. TDU had won the right to one member, one vote, rather than a rigged convention, and Fain and the UAW also fought for and won that right too. Both of us, the authors of this article, are proud of our years in TDU, of the contributions we made to the organization, and we admire the rank-and-filers who continue that work today. We’re glad to see that it has had a positive influence on the UAW and on some other unions as well.

All of this makes us even more disturbed and concerned to see TDU’s recent change over the last few years as it has subordinated itself to Sean O’Brien’s administration. TDU has called this relationship a “coalition” and suggested that it has made possible progressive developments, represented above all by the election of O’Brien and the 2023 UPS contract. So argued Ken Paff in a recent article in JacobinWe disagree. We believe that O’Brien represents a continuation of the Teamster old guard, a business unionist who seeks labor peace, and a leader who is a threat to a democratic and militant labor movement. His UPS contract left many behind and he has misled and deceived the members. Beyond that, O’Brien’s gestures of support for Donald Trump and other MAGA Republicans, suggest a turning away from the democratic, egalitarian, and inclusive values that inspired TDU.

In 2021, there were two Hoffa administration Teamster vice-presidents running for president of the international union: Steve Vairma and Sean O’Brien.  After a very close election in 2016, in which the Teamsters United Slate led by Fred Zuckerman and Tim Sylvester actually won the U.S. vote but lost by a few thousand votes when Canadian ballots were added, it was more than obvious that Hoffa would not run again. The story told by O’Brien, and repeated by TDU, was that he was removed by Hoffa as head of the UPS negotiations in 2018, because he wanted to be more aggressive with UPS and Hoffa did not. We’re to believe it was a coincidence that he then found himself in the enviable position of running as an insurgent against another of Hoffa’s lieutenants, Steve Vairma. Vairma as Hoffa’s “anointed one” found himself in the unique position of having to defend the 2018 contract, that he had nothing to do with while Sean O’Brien railed against the agreement that he was largely responsible for.

The hookup with Fred Zuckerman was hardly by accident, the 2016 campaign had given Zuckerman national name recognition and a bridge to TDU, that had previously considered O’Brien among the very worst of the old guard. TDU provided a critical structure and member access for any potential national challenge. Zuckerman, who had never wanted the top spot on the slate, including in 2016, was quite satisfied with the second position of General Secretary Treasurer and presto the O’Brien-Zuckerman, OZ slate was formed. Convincing the TDU Steering committee to go along with the gag was more difficult. For years O’Brien had been relentlessly criticized and labeled a bully by TDU particularly after his suspension for threatening teamster members. When Ken Paff raised the notion a full three years before the election there was significant opposition but one year later with committee members worn down and options more limited, they relented and TDU soon endorsed OZ a full two years prior to the election. Since it endorsed O’Brien, TDU has become his uncritical supporter, even when he has failed to fight for the members, suppressed the members rights, and engaged in questionable practices. Since then, TDU has given up its historic role as critic of bad leaders and defender of the rank-and-file.

The Teamsters Under O’Brien

O’Brien’s election has meant an expanded media operation and a more militant language and tone. While the tone and volume of rhetoric has changed a closer look reveals a reality that isn’t much different for teamster members.  An example is the UPS negotiations themselves. One of the big reforms touted by O’Brien and TDU is expanded negotiating committees with rank-and-file member participation.   The idea is that members in bargaining know what the jobs are really like and can also improve communication and keep members informed on the shop floor.  However, in the recent UPS negotiations the Teamster negotiating committees at the local and national level all had to sign nondisclosure agreements and faced expulsion from the committee if the chair felt they were in violation. NDAs created the same kind of “Brownout” that TDU raised hell about before, but not a peep from TDU about the mandatory NDA’s. The union’s proposals were not allowed to be shared with members, creating a situation where management and the union committee knew what had been proposed and the only people kept in the dark were Teamster members who work at UPS. Under Sean O’Brien the Teamsters are light years away from “open bargaining”.

After the contract had been negotiated in secret, O’Brien hired Berlin Rosen, a top public relations firm to handle the marketing campaign to sell the contract to the members. The union spent a tidy $1.2 million with Berlin Rosen in 2023, most of it to get the job done at UPS with a massive PR barrage. Again, a far cry from a democratic process of discussion and debate of the contract’s terms.

With the new contract in hand, O’Brien announced, “Our members just ratified the most lucrative agreement the Teamsters have ever negotiated at UPS. This contract will improve the lives of hundreds of thousands of workers. Teamsters have set a new standard and raised the bar for pay, benefits, and working conditions in the package delivery industry. This is the template for how workers should be paid and protected nationwide, and nonunion companies like Amazon better pay attention.” In fact, however, the contract failed to improve the situation of part-time workers, created a new tier of lower-paid workers, and reduced the money available for health and welfare and pension benefits.

Let’s start with the question of part-timers. As Kim Moody, the former director and editor of Labor Notes, wrote in his article, “Why the Rush to Settle?”

The promised “end of part-time poverty” was not achieved for all, and while two-tier pay for drivers were eliminated, the hourly gap between part-timers and full-time workers was not closed, and a two-tier setup was created for part-timers.

And Sam Gindin, the Canadian labor activist, in his article “Missed Opportunity? A Closer Look at the Teamster-UPS Agreement” suggests, just as Moody did, that the contract appeared at first blush to be a victory:

Against the excited headlines about “ending two-tiers,” the reprehensible secondary status for part-time workers – generally the “inside” workers in the warehouses and a majority of the union members at UPS – remains firmly in place, and the promise of more full-time jobs is little more than a paper commitment.

In addition to failing to end the part-timer’s second-class status, O’Brien permitted the creation of a new tier of lower-paid workers. Those hired after August 1, 2023 will earn less.

Although O’Brien has claimed there were no concessions, for the majority there will be significant cuts to Health and Pension Funds. The Teamsters Western Conference Pension Fund (the unions largest fund) will see a dramatic change from previous contracts. Historically, and in at least the last three UPS contracts negotiated by Hoffa, there was $1.00 per hour to be split for healthcare and pension, with the first money to go to pay for increases in the cost of healthcare and whatever was left into pension. That $1.00 has now been decreased to $.50 which means little and probably no money will be left for the pension fund. That loss from the largest teamster employer and largest contributor will have a serious impact on the future of the Fund and also encourage other employers to get the same deal, doing further damage.  Had O’Brien simply maintained the previous dollar negotiated by Hoffa, members would see literally hundreds more dollars in their monthly checks when they retire.

O’Brien also has a practice of misleading or misinforming the members, or trying to keep them ignorant of developments. For example, a year ago, when O’Brien tweeted a message taking credit for organizing 206,000 new members saying “we’re just getting started.” Teamster-Link (now t-union link), an open forum for the membership, was there to prove him wrong and forced the refiling of updated LM-2 reports showing a gain of about 3,200 new members.

Or to take another example, this one in the failure to inform the members category. The Teamsters settled a law suit charging O’Brien’s administration with racial discrimination in the firing of 13 Black and Hispanic staff members from the organizing department. As reported in The Guardian newspaper, the suit claimed that, “In total, Teamsters terminated 72.73% of the department’s staffers who were people of color, while firing only 28.57% of white staffers. Teamsters then proceeded to hire new staff members who were 73.33% white.” The suit also stated that O’Brien “publicly humiliated” the plaintiffs, claiming they were fired because they were “bad apples” and were “lazy.”

 “Our dues money has to pay this $2.9m lawsuit, because our general president racially discriminated against workers. That’s just not fair,” said the Teamsters Local 623 secretary-treasurer and principal officer, Richard Hooker Jr. “It’s a slap in the face of black and brown people, which make up a large contingency of this organization.” So The Guardian reports.

These Black and Hispanic organizers were among 150 to 180 terminations of Teamster employees on the day O’Brien took office. Terminations were accomplished by email with no severance, no healthcare and no opportunity to retrieve personal effects. One expects that when a new administration comes to power it will get rid the old regime’s Division Directors and policy-makers, however there aren’t that many Directors and policy-makers, these were mostly staff and professionals with no political position in the union.

O’Brien claimed in a California speech in September to have stopped the threat of AI and Robotics at UPS.  In the meantime, layoff announcements have been issued to thousands of teamsters around the country due to low “volume.” What makes this different from other layoffs is the accompanying WARN notices (Worker Adjustment and Retraining Notification), which are required notices in permanent closure situations. When the volume returns, these facilities will be closed and the work diverted to automated facilities. UPS CEO Carol Tome has stated her intention to automate “everything” and boasts about retaining the ability to do so under the new contract. Fortune magazineran an article several months ago with this title: “UPS just opened a giant new warehouse where 3,000 robots will do most of the work: ‘It’s a linchpin of our strategy.’” His statements aside, O’Brien offers no strategy to stop this process of AI’s and robots’ elimination of jobs at UPS or anywhere else.

In the past, Teamsters for a Democratic Union would have taken up issues such as those raised above. But TDU’s “coalition” with O’Brien has led to the organization’s total loss of independence and subordination to the O’Brien administration.

All of these issues and others led three retired Teamster activists and former officers with democratic reform credentials—Tom Leedham, Tim Sylvester, and Bill Zimmerman—to establish TeamsterLink in January of 2023 as a platform where Teamster officers and rank&filers could share information and discuss union issue. When the site proved to be popular, O’Brien hired the Nixon-Peabody law firm—known for union busting and its representation of Donald Trump—to sue TeamsterLink, on the charge of using the copyrighted word “Teamster.”  The charge is preposterous because the term has been used by all sorts of organizations, from local ball clubs to Teamsters for a Democratic Union. The firm sent a threatening “cease and desist” letter that was followed by threats to Apple and Google if they refused to shutdown T-Link.

Faced with the reality that O’Brien was willing to use member’s dues money to stifle free speech in the union, the retirees changed the name to T-Union Link continuing their mission to provide an open forum where teamster members and officers can express their views on any teamster related subject without fear of retaliation.

TDU and Politics

Paff reiterates in his essay, TDU’s historic position of avoiding partisan politics. Back in the 1970s when talking to Teamsters, TDU organizers frequently said, “We don’t care if you’re a Democrat, a Republican, or a socialist, a Baptist or a Catholic. We’re all rank-and-file Teamster activists here.” We feared that criticizing or endorsing Democratic or Republican party candidates at the national level would divide TDU whose members include big-city dockworkers and drivers who were mostly Democrats and Southern and Western road-drivers many of whom were Republican. Many of us believed that what was really needed was a new working-class party, a labor party to fight for workers’ interests. But for fear of creating divisions, we didn’t raise that either.

We did not then see much difference between Republicans and Democrats. Today, however, with Donald Trump as the Republican presidential candidate, the situation is fundamentally different. Trump is a union-buster.  He supports National right to work which would crush the Teamsters and other unions. We’ve seen the appointments he would make to the National Labor Relations Board, the referee in labor relations. The last time he appointed members to the Board they were management attorneys. Trump is not only a union buster, but also a racist, anti-immigrant, misogynist who represents everything that labor opposes both in the union movement and in society. We know that Trump and some of his supporters say that he’s not a racist, but the racists sure think he is and have become his most fervent supporters.

Trump is not just another Republican. He organized and inspired an insurrection at the Capitol in an attempt to remain in office despite losing the election. He is a dangerous authoritarian who threatens to become a dictator and to suppress the democratic rights that are essential to worker organizing. Treating November 2024 as just another presidential election and treating Trump as just another candidate is a serious and potentially disastrous mistake.

O’Brien, however, treats Trump as a legitimate contender for the presidency, which has infuriated many Teamster leaders and members. O’Brien invited all presidential candidates, including Trump to meet with union leaders, but he also went to Mar-a-Lago to talk with Trump and be photographed with him giving a thumbs up. Teamster vice-president John Palmer refused to attend the meeting with Trump who he called “a scab, union buster, and insurrectionist.” In recent decades the Teamsters gave primarily to Democrats, but now O’Brien’s Teamsters give to both Biden and Trump.  Unlike O’Brien, Shawn Fain of the UAW has had no trouble in calling Trump “a scab,” adding that, “Trump doesn’t give a damn about working class people.”.

Following O’Brien’s meetings with Trump, the union gave $45,000 to the Republican National Committee, the maximum allowable donation. The Teamsters have also given $5,000 to Trump supporter Josh Hawley for his re-election campaign to the U.S. Senate from Missouri.  Jim Kabel a former top Teamster official in the state wrote an op-ed opposing Hawley as does the Missouri labor movement that knows him best. For decades, TDU maintained its neutrality in national politics. This year such neutrality could turn out to be suicidal.

Who Gets the Bird?

Paff argues that this coalition with O’Brien has made it possible for TDU and other activists to engage in organizing as never before. While he doesn’t describe this crowd, the activists include not only TDU and Labor Notes, but also the young activists of the Democratic Socialists of America (DSA). A number of DSA members have gotten Teamsters jobs and become TDU and Teamster activists. The idealistic young socialists in the union today believe O’Brien gives them opportunities to grow and extend their influence. Maybe, but the TDU and DSA coalition with O’Brien makes one think of other such alliances in the past that proved problematic.

In the 1930s, John L. Lewis, the conservative, business unionist who was then president of the United Mine Workers (UMW)—a conservative but with a keen appreciation of the restlessness among workers that had developed in that period—could see an opportunity to organize an industrial union in the steel industry. Lewis—who had always been viciously anti-Communist—hired a number of Communist Party members to work for the Steel Workers Organizing Committee. When one of his staff asked him why he was doing such a thing he replied, “Who gets the bird? The hunter or the dog.”

Lewis and his appointed head of the committee, Philip Murray, used the Communists to organize, and though the Communists gained influence in some locals, Lewis and Murray kept complete control of the union. The United Steel Workers was founded in 1942 and Murray became its first president; he also served from 1940 to 1952, as president of the Congress of Industrial Organizations (CIO), the federation of all of the industrial unions (steel, auto, electrical, etc.) Then in 1949, as CIO president, Murray carried out the expulsion of Communist-led unions and the purge of Communists from the Steelworkers. The hunter still held the birds and the dogs had been driven out.

There may be a lesson here for the contemporary left. At any moment, O’Brien could turn on the TDU and DSA activists and drive them out of the union. Progressives, while they may enter into coalitions, must always retain their independence within the labor movement and in society at large.

For decades TDU played a progressive role, one that made it an inspiration to other unions such as the UAW. If it is to continue to do so, TDU’s leaders would be wise to change course, to reestablish the organization’s independence and to report more accurately on the issues facing the union.

Tom Leedham has been a Teamster since 1977 and has served at every level of Teamster leadership. He was TDU’s candidate for Teamster President opposing James Hoffa, Jr. in three elections in 1998, 2001 and 2006. Last year, together with two other long-time Teamster activists, Tim Silvester and Bill Zimmerman, he created T-Union Link (https://t-unionlink.org/) to provide a site for Teamster rank-and-filers to find information and discuss Teamster issues. 


Dan La Botz was a truck driver in Chicago in the 1970s and a founding member of Teamsters for a Democratic Union in 1976. He is the author of Rank-and-File Rebellion: Teamsters for a Democratic Union  (1991) and of the essay “The Tumultuous Teamsters of the 1970s” in Rebel Rank and File: Labor Militancy and Revolt from Below During the Long 1970s (2010). He lives in Brooklyn, New York

Friday, May 03, 2024

XENOPHOBIC PROTECTIONISM
Nippon Steel delays closing of acquisition of U.S. Steel until late this year after DOJ request

Nippon Steel Corporation’s logo is displayed on a sign outside its headquarters in Tokyo on Nov. 26, 2021. Nippon Steel said Friday, May 3, 2024, it has postponed the expected closing of its $14.1 billion takeover of U.S.STEEL

By Yuri Kageyama - Associated Press - Friday, May 3, 2024

TOKYO — Nippon Steel said Friday it has postponed the expected closing of its $14.1 billion takeover of U.S. Steel by three months after the U.S. Department of Justice requested more documentation related to the deal.

Tokyo-based Nippon Steel Corp. said the deal, already approved by U.S. Steel‘s shareholders, is still expected to go through.

Nippon Steel will continue to fully cooperate with the examination of the relevant authorities,” it said in a statement.

The sale has drawn opposition from President Joe Biden’s administration on economic and national security grounds, and from former President Donald Trump, the likely Republican presidential candidate in November’s election.

The new timing could push the closing beyond the election, but Nippon Steel denied the delay was related to that.

Initially the deal was supposed to have closed by September. Now it will close by December, meaning it could still close as early as September, according to a company spokesperson, who requested the anonymity customary at Japanese companies.

More than 98% of the Pittsburgh-based U.S. Steel Corp. shares voted at a special investor meeting in April approved the takeover. Nippon Steel has said it has prepared adequate financing to go through with the deal.

First announced in December last year, the merger of U.S. Steel into Nippon Steel has raised concerns about what that might mean for unionized workers, supply chains and U.S. national security.

The United Steelworkers union has opposed the acquisition.

Japanese Prime Minister Fumio Kishida met Biden last month. But there was no indication the topic came up in the summit.

When Biden visited the Pittsburgh headquarters of United Steelworkers recently, he reiterated his opposition to the Nippon Steel purchase, stressing U.S. Steel “has been an iconic American company for more than a century and it should remain totally American.”

The U.S. steel industry has declined over the decades as global steel production came to be dominated initially by Japan, and more recently by China. Under the deal, U.S. Steel will keep its name and its headquarters in Pittsburgh, where it was founded in 1901.
___

Yuri Kageyama is on X: https://twitter.com/yurikageyama

Thursday, April 25, 2024

Unions prepare to fight as Tata drops Port Talbot bombshell

Ruth Mosalski
Thu, 25 April 2024



Workers at Tata in Port Talbot are to strike after the company ended negotiations over changes to the business which will result in 2,800 direct job losses. Negotiations between unions and the Indian steel giant have today ended at a meeting in London, formally closing any chance of an alternative plan put forward by unions being adopted.

The company will end blast furnace steel production at the Port Talbot plant and will build a £1.25bn electric arc furnace, recycling scrap steel. The UK Government has contributed £500,000 grant towards the plan saying it was the only way to secure any jobs.

The company has confirmed it will close blast furnace five in June and blast furnace four in September. Tata says that its plan will be the largest investment in the country’s steel industry in decades and secure the future of UK steelmaking, protecting the "majority" of jobs and reduce the UK's carbon emissions. But they say it is not viable.

READ MORE: MPs told 2,800 job losses at Port Talbot will be 'tip of the iceberg'

READ MORE: Tata threatens to withdraw generous redundancy offer if Port Talbot steelworkers strike

"However, the unions’ own analysis shows their proposal would cost the company at least an additional £1.6bn when it is already losing £1million a day. Their plans are also high risk and would jeopardise the transition to green steel making,"

A ballot of Unite members, said to total 1,500 across Port Talbot and Llanwern, has already taken place with industrial action being one option. Now, as talks with the company have broken down, the union has said strikes will be announced soon.

A ballot of Community members, the biggest union of workers at the site, is ongoing with a result expected on May 9. The GMB is also consulting its members. No strike action is expected before all the members in all unions have voted.

Community's national Officer for Steel Alun Davies said: "This is an incredibly disappointing day for Tata steelworkers who have been betrayed by a company which owes them so much. It is disgraceful that Tata Steel have chosen to pursue a discredited, bargain basement deal over a viable plan for decarbonisation which would protect jobs and preserve the country's primary steelmaking capacity.

"I know that many of our members will be feeling dejected and anxious today, so it's vital we stick together to look after one another in these uncertain times. It's also vital that we take a stand together and send a message to Tata that we will not go quietly into the night. As someone who has had the privilege of working at Port Talbot and Llanwern, I know first-hand how steel is part of our lifeblood here in south Wales. If the company think that we'll let them trample over our industry and our communities now, they really don't know us at all."

A voluntary redundancy progress will start on May 15. Tata says it expects to place equipment orders for the electric arc furnace by September 2024 and based on current permitting timelines, begin construction on the project by August 2025. It is working with the National Grid to have the power infrastructure in place to commission the electric arc furnace on schedule by end-2027.

Unions have put forward an alternative plan to the one the company is pursuing but the Indian steel giant has said it is unviable. The UK Government has put money into Tata's scheme, saying it is the only way to secure any jobs at the site.

Community General Secretary Roy Rickhuss said: "We do not accept the company's assertion our plan was too expensive - in fact, it would have returned the company to profits, and the additional capital expenditure needed to make it a reality could have been funded by an additional £450m from the government - a drop in the water compared to what other European countries are investing in their domestic steel industries. For the latest politics news in Wales sign up to our newsletter here.

Unite has described Tata’s poverty pleading over its UK operations and its claim that alternative options for Port Talbot are not feasible as a sham.

Unite general secretary Sharon Graham said: “Tata is an immensely profitable company using our outgoing government’s inadequacies to make easy money and boost its other operations at the expense of UK jobs and the national interest.

“Why else would it be rejecting the promise of £3 billion for UK steel investment from an incoming Labour government and turning its back on a location ideally placed to reap the rewards of a steel market projected to grow tenfold?

“Our current government has utterly failed to stand up to Tata and demand better for Port Talbot and Llanwern’s steel communities and the country. Tata’s workers, with Unite using every power at its disposal, will not so easily be defeated. It's plans will be answered with industrial action."

Following a meeting with the UK Steel Committee, Tata Steel’s CEO and managing director, Mr. TV Narendran, said: "Having looked carefully at all the options over the past seven months in consultation with union representatives, we have decided to proceed with our proposed restructuring and transition. This is the most viable proposal, in contrast to the unions’ unaffordable plan which has high inherent operational and safety risk.

"Our proposal secures a long-term future for the business and preserves the majority of jobs in the UK. We will continue to work with the trade unions over the following 2 weeks to agree a memorandum of understanding on the future of the UK business and the impact on our people. Tata Steel is committed to creating a low-CO2 steel business at the heart of a green industrial ecosystem in Wales and the wider UK to safeguard steel supplies and create economic opportunities for generations to come."

Jo Stevens, Shadow Welsh Secretary, said the news consultation had ended is a "gut punch". "This is a total gut punch for people in Port Talbot, and the potential economic consequences will reverberate across south Wales for years."

First Minister Vaughan Gething and Welsh economy minister Jeremy Miles have said: "Quality steel, made in Wales, is the economic bedrock for many communities across Wales and is vital for the economy and security of the UK.

"We have consistently argued that there is a better deal for the industry and Tata workers that could and should be struck - securing a longer, fairer transition towards the greener production of steel in Wales. The Welsh Government will continue to make the case for that fairer transition and do all we can to support the skilled and loyal workforce and those in the supply chain. We will be reaffirming this commitment this afternoon to the transition board."

Welsh secretary David TC Davies said any strike action was a matter between unions and the company. "I think it was inevitable Tata was going to close the blast furnaces because of the losses they are making. We don't want disruption to the supply chain.

"People feel very strongly about this and 2,800 people face losing their jobs so I understand why they are angry and upset however I don't want to get into taking sides."

Tata Steel UK’s CEO, Rajesh Nair, said: "We have spent the last seven months openly and transparently sharing detailed business information, asset condition, maintenance plans and market forecasts with our trade union colleagues and advisers. While we have agreed to keep the Hot Strip Mill running through the transition, the unions’ plan presents significant financial, operational and safety challenges, and delays the transition to green steel by two years. We have concluded that it is not feasible to accept their plan, and it is not affordable.

"This is a difficult period of change for our people, and we will do our upmost to support them. Tata Steel has always been a responsible, long-term and patient investor in its UK business, and we are committing significant

 

Unions criticise Tata after plan to save steel jobs is rejected

25 Apr 2024 
Port Talbot steelworks. Photo Ben Birchall/PA Wire

Unions say their alternative plan to avoid thousands of job losses at Tata has been rejected by the steel company.

Community criticised the decision not to accept the unions’ “credible alternative” to the company’s “bad deal for steel”.

Unions met the company in London on Thursday with another plea not to press ahead with its proposals for its plant in Port Talbot, South Wales, which will lead to the loss of jobs.

Tata Steel has insisted its £1.25 billion plan for a state-of-the-art electric arc furnace in Port Talbot would be the largest investment in the steel industry for decades and would secure the future of UK steelmaking.

“It would protect the majority of jobs, reduce the UK’s carbon emissions by five million tonnes a year and could kickstart a green industrial revolution in South Wales,” said a spokesperson.

‘Incredibly disappointing’

Community general secretary Roy Rickhuss said after the meeting: “It’s incredibly disappointing that Tata have chosen to reject the multi-union plan, which is an ambitious and viable alternative to their destructive bad deal for steel.

“We do not accept the company’s assertion our plan was too expensive – in fact, it would have returned the company to profits, and the additional capital expenditure needed to make it a reality could have been funded by an additional £450m from the government – a drop in the water compared to what other European countries are investing in their domestic steel industries.

“Tata have made their decision, and our members will decide on our collective response.

“Tata made a proposal to negotiate a package with the unions to give us firm assurances on jobs and future investment, and we will consult our members on how we proceed

“We want to make one thing absolutely clear to the company: this isn’t over – not by a long shot. We will never stop fighting for our jobs, our industry, and our proud steel communities.”

Members of Community and the GMB are being balloted on whether to strike over the plans. Unite members have already voted in favour of industrial action.

‘Serious mistake’

Community Assistant General Secretary Alasdair McDiarmid said: “Tata have made a serious mistake in rejecting the credible, expert-backed Multi-Union Plan. Today’s announcement confirms that this was never about what was best for the steel industry, the country or the long-term future of the business: it was always about short-term cost-cutting.

“With their decision today, Tata have missed an historic opportunity to commit to a bold and ambitious future based on transformative strategic investment. We will continue to call on the company to change course, and a clear mandate for industrial action in our ongoing ballot will only strengthen our hand in negotiations.

“Our resolve to oppose Tata’s bad deal for steel – a plan which would be bad for jobs, bad for the environment, bad for national security, and devastating for our communities – has never been stronger.”

Community’s national officer for steel Alun Davies said: “This is an incredibly disappointing day for Tata steelworkers who have been betrayed by a company which owes them so much.

“It is disgraceful that Tata Steel have chosen to pursue a discredited, bargain basement deal over a viable plan for decarbonisation which would protect jobs and preserve the country’s primary steelmaking capacity.

“I know that many of our members will be feeling dejected and anxious today, so it’s vital we stick together to look after one another in these uncertain times.

“It’s also vital that we take a stand together and send a message to Tata that we will not go quietly into the night.

“As someone who has had the privilege of working at Port Talbot and Llanwern, I know first-hand how steel is part of our lifeblood here in South Wales. If the company think that we’ll let them trample over our industry and our communities now, they really don’t know us at all.”

‘Gut punch’

Jo Stevens, shadow Welsh secretary, said: “This is a total gut punch for people in Port Talbot, and the potential economic consequences will reverberate across South Wales for years.

“The Conservative Welsh Secretary has said no one will be left behind if they lose their job. I will be holding him to account on that every step of the way.

“A UK Labour government will invest in our steel industry to make sure the future of UK steel is fuelled by the skills, talent and ambition of Welsh steelworkers.”

The GMB said the meeting was “an unwelcome but not unexpected slap in the face.”

The GMB said one of the blast furnaces at Port Talbot will close by the end of June, and a second in September.

“Discussions will continue on future business commitments on volume and people, including the redundancy package,” said a spokesman.

Jonathan Reynolds, shadow business secretary, said: “It is devastating news Tata Steel are pressing ahead with the Government’s plans to close both blast furnaces in Port Talbot triggering thousands of job losses.

“With other options on the table, and with an uncertain future, Labour urges Tata not make any irreversible decisions about the site.

“Labour has long called for the Government to step in to protect jobs and maintain vital primary steel capabilities in South Wales.

“It’s clear the Government has no plan for steel, for an effective industrial strategy or for our economy.”

Saddened

Paul Davies MS, Chair of the Senedd’s Economy, Trade & Rural Affairs Committee said:“We are deeply saddened to hear Tata has concluded discussions with the steel unions and intends to proceed with its proposals to close both blast furnaces. The whole Senedd has been clear that keeping a blast furnace in Port Talbot during the transition to an electric arc furnace is the right thing to do”.

“This decision will have major implications for workers and their communities. It is vital that they are supported through this massive change”.

“We are also disappointed to see Tata using redundancy packages as a bargaining chip in its industrial relations – all workers laid off should be entitled to the enhanced redundancy package already offered – with no additional conditions attached”.

“The UK and Welsh governments must act quickly to support those that will be made redundant to progress into new, good quality employment and to make sure the strong talent pool we have currently working at the steelworks is not lost to south Wales.”

Plaid Cymru spokesperson for the Economy and Member of the Senedd for South Wales West, Luke Fletcher MS said: “It is deeply disheartening that Tata Steel has opted to dismiss the unions’ proposals – the fallout will be utterly devastating.

“The impact on Port Talbot, surrounding communities and the many businesses throughout Wales that depend on the workforce in Port Talbot will be catastrophic. Months of consultation should have led to a better outcome for workers.

“While Tata may have made their decision, our determination to advocate for the well-being of workers, communities and the future of the industry remains steadfast. We must now see a plan and decisive action from the UK and Welsh Governments who must explore every avenue and use every power at their disposal to safeguard Welsh steel.”



Fifth Tata Steel / Port Talbot Transition Board  Statement

The Tata Steel / Port Talbot Transition Board met for the fifth time on 25 April 2024.

Steel being rolled

The Tata Steel / Port Talbot Transition Board met for the fifth time on 25 April 2024.  

The Board received an update from Tata Steel UK on their decarbonisation project.  

A Local Economic Action Plan was presented to the Transition Board. The Board endorsed the Plan as a broad road map whilst also recognising the outstanding issues need to be addressed and discussed prioritisation of the proposed interventions. The Board agreed that supporting affected employees to find new well-paid jobs will be its first priority. The Board will also prioritise supporting businesses affected in the supply chain. The Board also recognised the importance of longer-term regeneration of the region.  It was agreed that this plan, overseen by Neath Port Talbot Council, will be used as a basis for investment, subject to business cases being presented to the Board at subsequent meetings.  

Rt Hon David TC Davies, Secretary of State for Wales chaired the Transition Board meeting. Deputy Chair, Jeremy Miles MS, Cabinet Secretary for Economy, Energy and Welsh Language was in attendance. Felicity Buchan MP, Parliamentary Under Secretary of State in the Department for Levelling Up, Housing and Communities attended in the place of the other Deputy Chair, Rt Hon Michael Gove MP, Secretary of State for Levelling Up. Also, in attendance included Alan Mak MP, Parliamentary Under Secretary of State jointly in the Department for Business and Trade and the Cabinet Office; Henrik Adam, Chair of Tata Steel UK; Rajesh Nair, Chief Executive Officer of Tata Steel UK; Cllr Steve Hunt, Leader of Neath Port Talbot Council; Chief Executive Officer for Neath Port Talbot Council Karen Jones; Stephen Kinnock, MP for Aberavon; David Rees, MS for Aberavon; Tom Giffard MS for the region of South Wales; Luke Fletcher MS for South Wales West. The Board was attended by its independent members, Anne Jessopp CBE and Sarah Williams-Gardner. Representatives from the trade unions also attended: Rob Edwards, Regional Secretary for Community Union; Alun Davies, National Officer for Steel & Metals for Community Union; Tom Hoyles, Politics, Press and Research for GMB Wales & South West and Jason Bartlett, Regional Officer of Unite Wales.   

-ends-  

NOTES TO EDITORS 

Tata Steel announced proposals in September to invest £1.25 billion, including a UK Government grant worth up to £500 million, to enable greener steel production at Port Talbot. A Transition Board to support the people, businesses and communities affected by the proposed transition to low-CO₂ steelmaking, was established in October 2023.  

The Transition Board will have access to up to £100 million to invest in skills and regeneration programmes for the local area. It will focus on:   

  • Immediate support for the people, businesses and communities directly affected by the proposed transition to low-CO₂ steelmaking at Port Talbot; and   

  • A plan for local regeneration and economic growth for the next decade.   

The Transition Board does not oversee the proposed £1.25bn investment in low-CO₂ steelmaking at Tata Steel UK. This is for the company to oversee with the Department for Business and Trade, UK Government.