Community is pressing Tata Steel UK to scrap its bad deal for steel and commit to the alternative Multi-Union Plan ahead of crucial talks with the company this week.
The call follows a meeting between steel unions and Tata officials last week, and the publication of a new report from industry experts Syndex which slams Tata’s approach for pursuing ‘what’s cheap’ over ‘what’s best’. The report highlights that the company’s current proposal – which would cut around 2,800 jobs in South Wales by moving production at Port Talbot to a single 3mt Electric Arc Furnace – comes with significant risks, and would make Tata Steel UK an outlier in Europe.
In contrast, Syndex describes the Multi-Union Plan as “the only solution offering to maintain all the volume currently produced by Tata Steel UK” providing “a future for all the company’s assets and a roadmap for a just transition under the constraint of the financial hurdles and the reality of market dynamics for the UK steel industry.”
Community General Secretary Roy Rickhuss said:
“During our meeting with Tata last week, members of the National Trade Union Steel Coordinating Committee provided our final conclusions on the company’s restructuring proposals: namely that the company’s plan is reckless; that it weakens national security by removing Britain’s primary steelmaking capacity; and that it would have devastating consequences for steel communities in South Wales and beyond.
“Our Multi-Union Plan is a credible alternative to Tata’s destructive scheme. It would safeguard the future of Port Talbot steelmaking, protect all the downstream plants, save thousands of jobs and can be delivered with no compulsory redundancies.
“It is not too late for Tata to do the right thing and adopt the Multi-Union Plan – and we hope that they will take this step. However, should the company choose to reject it, we will fight them every step of the way. To enable us to do this, we will need the strongest possible mandate from our ongoing industrial action ballot. For that reason, I am urging all our members to vote ‘YES’ and ‘YES’ and return their ballot papers at the earliest opportunity.”
Community’s Assistant General Secretary Alasdair McDiarmid said:
“Syndex’s new report demonstrates clearly that our Multi-Union Plan is viable and sustainable, whilst Tata’s proposals are reckless and harmful. The company must change course, and the UK Government need to step up too. Our alternative plan would require additional investment from the government – taking total public support for the decarbonisation of Port Talbot to £950m overall – but this is still significantly less than the support packages other governments are providing to green their steel industries. It’s also in line with the £3bn Green Steel Fund the Labour Party has guaranteed to deliver in the next parliament.
“We are at a critical moment, and the choices that Tata and the government make now will reverberate for generations to come. The fundamental question here is whether we want to be a country that makes its own steel, or a country that imports it – as would be inevitable under Tata’s damaging proposal. With the spectre of a CBAM exemption for India hanging over free trade talks, we risk under current plans becoming little more than a simple processor for imported Indian Steel. We can’t allow our industry to be sacrificed on the altar of Rishi Sunak’s search for a legacy.
“With so much at stake, we are urging our members to vote ‘YES and ‘YES’ in our industrial action ballot to enable us to fight to maintain blast furnace steelmaking into the 2030s and to prevent compulsory redundancies.”
Leading South Wales steel MPs have also thrown their support behind Community and the GMB’s Multi-Union Plan.
Stephen Kinnock, MP for Aberavon, said:
“As industry experts at Syndex have laid out this week, the Multi-Union Plan is a detailed, serious, robust and compelling proposal for the future of the Port Talbot steelworks and it has my full and unequivocal support. It’s the only realistic route to retaining our customer base, and it’s also the only credible pathway to a strong, competitive and profitable future for steel-making in Port Talbot and throughout the downstream plants across Wales and the UK. By contrast Tata’s shortsighted and counter-productive plan will mean exporting jobs from Port Talbot to India, a country where steel plants have a far higher carbon footprint.
“It’s vital that steel is at the heart of a forward-looking industrial strategy, which is why Labour has pledged £3billion to support the industry over the next decade.”
Jessica Morden, MP for Newport East which includes Llanwern Steelworks, said:
“Tata and Rishi Sunak’s bad deal for steel would represent a huge blow to our steel industry and steel communities like our own in Newport. The deal would also leave the UK country dependent on imported steel from heavy-polluting countries at a time of global uncertainty.
“It doesn’t have to be this way, and the Multi-Union Plan for steel which Community and GMB have put forward represents a viable alternative to protect jobs and preserve steelmaking capacity here in South Wales. I urge Tata to think again and change course from their damaging proposals.”
Syndex’s updated final response to Tata Steel’s proposals and the Multi-Union Plan is available to read here.
Syndex have been able to demonstrate the Multi-Union Plan would deliver a positive EBITDA over the transition period between April 2025 and March 2032, and would reach a sustainable £200m EBITDA in 2032. These facts have been accepted by the company.
The Multi-Union Plan, based on a model to install 2x160t EAF, would require £622m of additional CAPEX compared to the company’s proposals. However, the additional investment could be financed by the operations (EBITDA of £172m between 2026 and 2032) if government committed to providing an extra £450m.
This would take the total public support for the decarbonisation of Port Talbot to £950m – still way below the support packages Germany and others are providing. We believe this to be absolutely deliverable – and in line with the £3bn Green Steel Fund the Labour Party has guaranteed to deliver for us over the next parliament.
The results of our ballot on industrial action at Tata Steel are expected on May 9th.
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Community is the steelworkers’ union. More steelworkers are members of Community than any other union, and we represent the vast majority of workers impacted by Tata’s decarbonisation plans. We have a history dating back over a century, representing members and campaigning to protect Britain’s steel industry. We are a modern trade union, campaigning for a better working world.
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