Sunday, July 07, 2024



UK government prioritizing job retention in Tata Steel talks

UK government prioritizing job retention in Tata Steel talks


Tata Steel aims to shut down several carbon-intensive blast furnaces, resulting in job losses


Jul 07, 2024



What's the story

The new British government is focusing on preventing job losses in its ongoing discussions with Tata Steel, the largest steel producer in Britain.Business Minister Jonathan Reynolds confirmed this priority during the talks, which are centered around government support for a transition to lower-carbon technologies."We see this as a major priority," Reynolds told the BBC, adding, "I'm going to make sure that job guarantees are part of the negotiation that we're having."

Greener switch

Transition to lower-carbon technologies

Tata Steel has initiated the process of shutting down one of its carbon-intensive blast furnaces, with another closure scheduled for September.This move toward lower-carbon technologies could potentially result in the loss of up to 2,800 jobs at Port Talbot in South Wales.The company's shift is part of a broader industry trend toward more sustainable production methods to prevent climate change.

Support package

Support package for Tata Steel

The new British government is expected to approve a £500 million ($635 million) support package for Tata Steel.This package, agreed upon by the previous administration, aims to assist in the construction of a lower-carbon electric arc furnace.However, unions are hoping for a more favorable deal with Tata that could potentially prevent some job losses.


Unite will keep Labour's ‘feet to the fire’ over steel investment pledge


Unite general secretary Sharon Graham

PETER LAZENBY
SUNDAY, JULY 7, 2024
MORNINGSTAR

UNITE general secretary Sharon Graham warned today that she would “keep [Labour’s] feet to the fire” over its manifesto pledge to invest billions to save Britain’s struggling steel industry.

She was speaking on the BBC’s Sunday With Laura Kuenssberg after Business Secretary Jonathan Reynolds said “job guarantees” would be part of the negotiations between the government and steel giant Tata about its Port Talbot site in South Wales, where 2,800 jobs are under threat.

Ms Graham said Labour would have to borrow to invest in British industry — “we do not have time to wait for growth.”

She said: “There is no doubt that Labour coming in and the intent of what they want to do is a good thing. I am glad we have a Labour government.

“But I am the leader of a trade union and my focus is on jobs, pay and conditions for workers.

“The problem we have is that when investment is spoken about in Britain, there are never job guarantees attached.

“The devil will be in the detail and I am going to keep an eagle eye on what that detail means.”

Mr Reynolds said on the BBC show: “There is a better deal available for Port Talbot and the steel industry as a whole.

“I do want things in exchange for money — we’ll co-invest with the private sector around jobs and technology.”

Ms Graham added: “I am going to be seen as either a critical friend or a pain in the proverbial.”

The Labour manifesto has committed to provide £2.5 billion to “rebuild our steel industry,” with Mr Reynolds noting this was on top of the £500 million committed by the previous government.

Starmer will have ‘no honeymoon period’ warns boss  LEADER  of UK’s biggest union


Keir Starmer’s new Labour government is facing an immediate challenge from the trade unions on the left to tear up his promises over economic stability

David Maddox
Political editor
THE INDEPENDENT
JULY 7, 2024

Unite General Secretary Sharon Graham tells Starmer she will 'hold his feet to the fire'


The leader of Britain’s biggest union has thrown the gauntlet down to Sir Keir Starmer and his government over economic policy just 48 hours into his government.

Sharon Graham, the general secretary of the Unite union, has demanded that Labour “borrows to invest” and brings in a protectionist policy of only using British steel for public sector projects in the UK.

She told BBC’s Laura Kuenssberg that “there will be no honeymoon period” for Starmer and his government.

The discussion came as the new business secretary Jonathan Reynolds answered questions on Tata Steel’s plant in Port Talbot, which is in danger of being closed down in days, with 2,800 jobs at risk.

Unite boss Sharon Graham warned that the Labour government will not have a honeymoon period (PA)

She said:”I am glad we have a Labour government [but] I am the leader of a trade union and my main focus is jobs, pay and conditions for workers.

“So I am either going to be seen as a critical friend or a pain in the proverbial.”

Ms Graham and Unite had refused to back Labour’s manifesto believing it did not go far enough on workers’ rights and protecting jobs in an early shot across the bows for Sir Keir.

Ms Graham said: “It’s my job to make sure we have feet to the fire on this.”

She warned the “devil will be in the detail” and claimed “the problem is that when we talk about investment there is never a jobs guarantee attached.”

In a full frontal attack on new chancellor Rachel Reeves’s promises to keep a tight control of public expenditure to avoid inflationary pressures, she warned that Labour will need to rip up the fiscal rules.

Business secretary Jonathan Reynolds leaving BBC Broadcasting House in London, after being interviewed by Laura Kuenssberg (PA )

“We will have to borrow to invest in British industry; that is going to have to happen.”

Sir Keir and Ms Reeves have insisted investment can only come with economic growth but Ms Graham said there is not time to wait for that.

She said: “Since 1997 the fiscal rules have changed nine times, when we change them then there is opportunity. We are going to have to borrow to invest, we cannot wait for growth.”

Unite wants the UK to borrow up to the same limits as the US: 127 per cent of GDP rather than the UK’s 99 per cent.

Former Tory leader Michael Howard warned that this is only possible in the US without a spike in inflation because the US dollar is a reserve currency.

Earlier, Mr Reynolds said that “job guarantees” would be part of the negotiations between the government and steel giant Tata about its Port Talbot site.

Tata has shut down one of two blast furnaces at its biggest plant under its plans to switch to a greener form of production. The second blast furnace is due to be shut down in September.

Mr Reynolds said: “There is a better deal available for Port Talbot and the steel industry as a whole.” He told the BBC’s Sunday With Laura Kuenssberg: “I do want things in exchange for money we’ll co-invest with the private sector around jobs and technology.

“I think that’s a reasonable way to make sure public money is being well spent and I believe there are things, capacities, the steel industry needs in future that could be part of that conversation and that’s what I’ll be having in the next few days.”

He added: “I’m going to make sure that job guarantees are part of the negotiation that we’re having.”

‘Better deal available’ for Port Talbot steel jobs, says Business Secretary


Sunday 7 July 2024 
The steelworks in Port Talbot is seeing an end to traditional steel-making at the site.
Credit: PA Wire/PA Images

The UK Government will press for “job guarantees” in return for taxpayer-funded investment during talks with steel giant Tata over the future of Port Talbot.

The new Business Secretary, Jonathan Reynolds, said he believes there is a “better deal available” for the South Wales site and the steel industry as a whole, as he confirmed negotiations with Tata were continuing on Sunday.

Tata has shut down one of two blast furnaces at its biggest plant under its plans to switch to a greener form of production.

The second blast furnace at Port Talbot is due to be shut down in September.

Unions are opposed to the changes, which will lead to the loss of around 2,800 jobs, although Tata has argued its restructuring programme is designed to stem “unsustainable” losses of more than £1 million a day.

Mr Reynolds described the situation at Tata as a “major priority” and insisted the approach is “not about underwriting loss-making businesses” but being a “partner for investment in the future”

.
Business Secretary Jonathan Reynolds leaving BBC Broadcasting House in London, after appearing on Sunday With Laura Kuenssberg
Credit: Jeff Moore/PA

He told BBC’s Sunday With Laura Kuenssberg: “There is more money available for the steel industry under our plans for government.

“But that’s about making sure we meet this transition with the private sector together and recognise…it is a good exemplar of how we have to make sure that decarbonisation is not deindustrialisation and we’ve got to do that together.

“But there is a better deal available for Port Talbot and the steel industry as a whole, I’m sure of that.”

Mr Reynolds added: “I do want things in exchange for money we’ll co-invest with the private sector around jobs and technology.



Blast Furnace 5 winds down with steam and loud noises expected in Port Talbot



Strike at Port Talbot steelworks called off


“I think that’s a reasonable way to make sure public money is being well spent and I believe there are things, capacities, the steel industry needs in future that could be part of that conversation and that’s what I’ll be having in the next few days.”

He added: “I’m going to make sure that job guarantees are part of the negotiation that we’re having.”

Mr Reynolds said he would not put a particular figure on the Government’s aims, saying: “Blast furnaces employ more people than some of the newer technologies available, whether that is electric arc furnaces or what is called DRI, so there’s a range of things you have to understand.

“But I absolutely agree with the point that we have to make sure this is a transition that works for working people and that they’re part of that and you can’t simply give money out without guarantees in exchange for that.

“But there is a negotiation and I’m going to have to keep a little bit of that information to myself while I engage with the company.”

Unite General Secretary Sharon Graham on the BBC One current affairs programme, Sunday With Laura Kuenssberg
Credit: Jeff Moore/PA

Unite general secretary Sharon Graham told the same programme: “There’s no doubt that Labour coming in and the intent of what they want to do is a good thing.”

She added: “My main focus is jobs, pay and conditions for workers so I’m going to either be seen as a critical friend or a pain in the proverbial, whichever they want to take that, because it’s my job to make sure feet to the fire on this.”

Ms Graham said the “devil will be in the detail” when it comes to a jobs guarantee on investment.

The Labour manifesto has committed to provide £2.5 billion to “rebuild our steel industry”, with Mr Reynolds noting this was “on top of” the £500 million committed by the previous government.

Tata has said it would make every effort to mitigate the impact of the transformation on affected employees and the local community.

It said it had put forward the most favourable financial package of support it had ever offered, including facilities for training and upskilling, alongside finance for small and medium-sized businesses through the UK Steel Enterprise regeneration and job creation scheme.

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