Tata Steel UK Strike Averted As Union Agrees To Further Talks

A union of steelworkers that intended to start industrial action on Monday regarding Tata Steel UK's future plans for the Port Talbot plant in Wales has cancelled their strike, citing assurances of further investment discussions.

Unite the Union had initially announced a strike starting July 8, prompting Tata Steel UK to contest the balloting procedure and expedite the planned shutdown of blast furnaces.

The company welcomed Unite's decision against a strike and shelved the early closure plans.

"We have received written confirmation from Unite Union that with immediate effect they are suspending their current action short of a strike as well as the potential strike action due to commence on Monday July 8,” said a Tata Steel Ltd. spokesperson.

"As a result, and given we can now be confident of ensuring appropriate resourcing of activities to operate safely, we will halt preparations for the early cessation of operations on Blast Furnace 4 and the wider heavy end in Port Talbot, planned for this week—we welcome the fact that we have avoided having to progress down this path,” the spokesperson said.

The company stated that talks with the unions will now move forward, focusing on future investments and business objectives, rather than revising the current plan for the heavy-end closure or the enhanced employment support conditions.

“The wind down process for Blast Furnace 5 has now begun to plan and we expect to produce the final iron at the end of this week,” the spokesperson added, with reference to the furnace scheduled for closure this week.

Unite members went on strike to protest against job cuts and their effects on the local community. Other steel unions have welcomed the news, which Unite termed as 'vital'.

“Workers were simply not prepared to stand idly by while steel making ended and their communities were laid to waste,” said Unite general secretary Sharon Graham.

The Mumbai-headquartered steel major had originally planned to shut down one of the blast furnaces by the end of June and the second one by September. However, Unite the Union’s proposed strike from July 8 raised the prospect of the closure being forced earlier.

“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 GBP 1.25 billion investment in low-CO2 steelmaking, which will ensure Tata Steel has a long and sustainable future in the UK,” the company said, urging unions to carry on the negotiations.

Graham had claimed it is "fighting for the future of the steel industry" and wanted 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.

(With inputs from PTI)