The UK’s new business secretary, Jonathan Reynolds, has stated that “job guarantees” will be part of the negotiations with Tata Steel about the future of the Port Talbot site. Reynolds, who is currently in active negotiations with Tata alongside Prime Minister Sir Keir Starmer, said that newer technologies would result in fewer jobs, but there was “a better deal available” for the plant. The previous Conservative government agreed to a rescue package amounting to £500m to help keep the plant open and transition to greener production methods, but 2,800 jobs would still be lost. Tata has already closed one of the plant’s furnaces, with a second scheduled to shut this September.
Pressed on whether he could guarantee all jobs, Reynolds responded that blast furnaces employed more people than newer technologies, so “there’s a range of things you have to understand but I absolutely agree with the point that we have to make sure that this is a transition which works for working people and that they’re part of that”. The idea of future investment in the plant does offer hope, but there will be no short-term job security. Even the electric arc furnace, which Tata Steel is due to build next year, will employ far fewer people than the heavy end of blast furnace production.
Steel union Unite’s General Secretary, Sharon Graham, called for investment, job guarantees, and procurement legislation that would require “all UK infrastructure projects” to use UK steel. Reynolds explained that Labour’s manifesto pledged £2.5bn towards the steel industry, in addition to the £500m agreed to by the former government. He explained Labour’s position, stating that investment was ‘key’ and that “it is about being a partner for investment in the future”. Rajesh Nair, the head of Tata Steel UK, has said that he is looking forward to working with the UK government on growing green steel production. Labour had previously broached the subject of supporting future investment in Port Talbot during the general election campaign, and Tata bosses had been receptive to the idea. However, future investment is unable to save jobs in the short term
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