Legal Showdown Looms As Tata Steel UK Challenges Union Strike, Plant Fate At Stake

Tata Steel Ltd. announced on Friday that it's compelled to take legal steps to contest the legitimacy of a steelworkers' union strike vote. The company also cautioned that its blast furnaces at Port Talbot in the UK might need to halt operations due to the ongoing industrial action.

Initially, the Mumbai-based steelmaker had scheduled the closure of one blast furnace by June-end and the second one by September. Yet, the potential strike by Unite the Union on July 8 could accelerate the shutdown process.

“Following the announcement by the Unite Union to unilaterally call strike action from July 8, Tata Steel is unfortunately forced to commence legal action to challenge the validity of Unite’s ballot,” a Tata Steel spokesperson said.

“In the coming days, if we cannot be certain that we are able to continue to safely and stably operate our assets through the period of strike action, we will not have any choice but to pause or stop heavy-end operations (including both blast furnaces) on the Port Talbot site," the spokesperson said.

"That's not a decision we would take lightly, and we recognise that it would prove extremely costly and disruptive throughout the supply chain, but the safety of people on or around our sites will always take priority over everything else.”

Tata Steel once more requested Unite to cease its industrial action and unite with the other unions—Community and GMB—in contemplating the company's suggested Memorandum of Understanding.

The memorandum includes a comprehensive proposal that offers substantial employee support packages, training, and skills enhancement.

“We understand the impact of our restructuring will have on many employees and contractors, but we remain committed to a just transition and—pending a government-backed grant funding agreement—to the 1.25 billion pounds investment in low-CO2 steelmaking, which will ensure Tata Steel has a long and sustainable future in the UK,” the company’s spokesperson said.

Unite General Secretary Sharon Graham claimed it is "fighting for the future of the steel industry" and wants things deferred until after the general election on July 4, as it claims to have secured "serious investment" from the Opposition Labour Party—which is leading the pre-election surveys.

"Tata putting out a statement to shut or pause its blast furnaces three months earlier than they intended to is the latest in a long line of threats that won't deter us," she said.

"The Unite campaign is not about selling jobs, it's about securing the long-term future of steel-making in this country for thousands of workers in Port Talbot and South Wales."