Tata Steel has warned workers and unions that half of the workforce at its Port Talbot plant in Wales could be facing redundancy due to proposed restructure plans. Of the 2,423 jobs at risk across the UK, Port Talbot is set to be the hardest hit, with 1,929 roles at risk of redundancy. The plant currently employs 3,859 people. Union bosses met with Tata to discuss the proposed changes in Birmingham on Friday.
Speaking on the announcement, Community and Unite, two steelworkers’ unions, said they will closely scrutinise the proposed changes to find alternatives to job losses. Tata Steel is aiming to move towards a more green-focused business model after more than a decade of losses. The formal consultation period on the restructuring will be 45 days.
Union general secretary Sharon Graham weighed in with concerns over Tata’s plans, calling them short-sighted and not in the interests of the company, workforce, or the UK. Unite regional secretary for Wales, Peter Hughes, called the consultation period far too short, given the scale of proposed job losses and their ripple effects across the area.
Steel production in the UK has been hit hard by both cheap imports undermining prices and flagging demand during the coronavirus pandemic. Earlier this year, Sanjeev Gupta, the owner of Liberty Steel, was seeking hundreds of millions of taxpayer support from the UK government after his GFG Alliance was hit by credit restrictions. Despite Gupta finally securing refinancing from a White Oak Global Advisors-led consortium, Liberty Steel still teeters on the brink of administration with 5,000 jobs at risk
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