A union has threatened to escalate industrial action over planned job losses at steel giant Tata.
Members of Unite are already going to ban overtime and begin a work-to-rule later this month in protest at the closure of blast furnaces at Port Talbot in South Wales.
The union said it’s now preparing to escalate industrial action after Tata responded with a threat to cut redundancy pay.
Earlier this year, Tata announced it would shut down its two blast furnaces as part of its £1.25 billion decarbonisation plan.
The company plans to transition to low-carbon steel production, using an electric arc furnace which makes steel from scraps instead of from scratch, but the plan is expected result in over 3,000 job losses, including 2,800 over the coming year and another 300 in the long-term.
On Thursday, Unite the union said around 1,500 of its members at Tata based in Port Talbot and Newport Llanwern would begin working to rule as well as taking part in a continuous overtime ban from June 18.
The union called on the steel maker to hold off the redundancy plans and wait for the July 4 general election, when Labour may enter government.
The party, which is leading the opinion polls, has previously promised to invest £3 billion into developing “clean steel technologies” and to “put the workforce at the heart of our offer.”
Warning of escalated actions on Sunday, United said that Tata had refused to alter its plans over the general election, and had threatened to cut redundancy pay and shut down furnaces earlier.
The union published a letter from Tata Steel CEO Rajesh Nair. The letter said the company’s proposed redundancy package was “the most favourable package” it has ever offered, and warned that the costs that industrial action would bring could mean the company is “unable to continue to support this package.”
The letter went on to say, “Neither the general election nor its outcome has any impact on the timings or our decision to proceed with the winding down of our heavy-end operations [blast furnaces],” and the timetable may become accelerated if the company is “unable to fully resource the assets and ensure safe and stable operations.”
Sharon Graham, general secretary of Unite, said the union and its members “will not tolerate Tata’s bully boy tactics and neither should Labour.
“The union is now preparing to escalate industrial action in direct response to the company’s threats,” she said.
Ms. Graham accused Tata Steel of “trying to hold the country to ransom, while needlessly throwing thousands of workers on the scrapheap,” adding, “If Tata is not prepared to do the right thing, then an incoming Labour government must ensure it does.”
“Tata’s actions show the fundamental problem with private multinational companies owning the UK’s foundation industries. It has no concern for the long-term economic damage and harm its action will cause in the UK,” she said.
A Tata Steel spokesman said: “Following the publication of our most generous employee support package to date and having shared assurances for the future of the UK business with our trade union partners, we had hoped they would put the revised offer to their members. It is therefore disappointing that Unite have decided on industrial action—we are now considering our legal options regarding the legality of their ballot.
“The enhanced package will remain in place unless industrial action is taken, in which case it would revert to our standard terms.
“In light of the ongoing impact on the business, the potential for further disruption, and in order to ensure safe and stable operations, we are now considering bringing forward the dates for the closure of blast furnace 5 and the winding down of operations across the wider heavy-end.
“We are asking Unite to withdraw their call for industrial action and put the revised offer to their membership.”
