Unite welcomes Port Talbot investment

Steel will continue to be at heart of the South Wales community and economy after Labour agreed a deal with Tata Steel that ensures significant future investment and new steel jobs in the region.

Unite welcomed the announcement from government this week of a first stage £500m investment in a 3.2 mega tonne electric arc furnace at Port Talbot. 

The initial investment is in addition to a £2.5bn government funding package which Unite was instrumental in securing. The union is also in ongoing talks on further investment which should include new lines being installed and will generate new jobs at both Port Talbot and Llanwern. These plans should be agreed over the next 12 months.

Unite has secured work for nearly all its members and has avoided compulsory redundancies, with the majority of its 1,500 members remaining at the Port Talbot plant.

 For those taking voluntary redundancy, an enhanced redundancy package is being offered, which the government called Tata’s “most generous voluntary redundancy package ever”. Those at risk of compulsory redundancy will be offered a retraining programme, during which they’ll receive full pay for the first month and a salary of £27,000 for 11 months after.

Also part of the deal, Tata must maintain a minimum of 5,000 jobs across its UK operations.

Commenting on the deal, Unite general secretary Sharon Graham said, “The two-stage government commitment to provide serious funding for steel in South Wales is vital for local communities and the long-term future of the steel industry.

 “The last government was quite frankly asleep at the wheel,” she added. “The present crisis is a direct result of it failing to invest in the UK steel industry and allowing the companies involved to rundown their operations and let them fall into disrepair. Conservative inaction and disdain have resulted in wholly avoidable job losses.

 “Unite which secured the additional funding will ensure that the substantial second stage investment in South Wales means new jobs will be available and secure the future of Port Talbot and Llanwern,” Graham went on to say.

 “It is now imperative on Tata to bring forward the second stage proposals to develop increased steel capacity at its South Wales sites, a jobless transition will not occur on our watch.”

 Unite regional secretary Peter Hughes added, “The era of government’s ignoring and letting down Welsh steel workers and their communities is over. Make no mistake Unite will be holding Tata’s to account to ensure new investment, new lines and new jobs are fully developed.

 “Unite has secured work for nearly all its members, avoiding compulsory redundancies and is in talks with government and Tata to create new jobs.”

Meanwhile, Unite convenor at Port Talbot Ian Williams noted, “Unite members recognise that the Labour government is committed to working with them to provide new investment and new jobs at steel sites in South Wales. Our union, Unite will hold their feet to the fire to make sure this happens.

 “It is absolutely essential that steel remains at the heart of local communities,” he continued. “For too long steel workers have been let down by successive governments who didn’t care about their futures, those attitudes have created the current crisis and must be consigned to the dustbin of history.”

By Hajera Blagg