Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
Tuesday 21 May 2024 10:00 pm  |  Updated:  Wednesday 22 May 2024 8:15 am

Tata Steel: Labour demands urgent support for workers facing redundancies

By: Bethany Wales

Add as a preferred source on Google
Aerial shot of Tata Steel in Port Talbot
Tata Steel is planning to replace blast furnaces at its Port Talbot site with an electric arc furnace. Photo: Ben Birchall/PA Wire

Labour is calling for the government to take urgent action to cover thousands of workers facing redundancy at the country’s biggest steel plant.

Tata Steel is planning to replace blast furnaces at its Port Talbot site with an electric arc furnace – a greener method of production which needs fewer workers – putting more than 1,900 jobs at risk.

Shadow Welsh secretary Jo Stevens has demanded the government acts faster to get support in place for workers and communities.

Labour has called for dedicated employment advisers to be placed in the community to coordinate and deliver support for those affected.

The party has committed to invest up to an additional £2.5bn – on top of the government’s planned £500m – in the UK steel industry during the next parliament if it wins the general election.

Ms Stevens said: “Thousands of jobs are at risk in Port Talbot and steel communities across south Wales because Conservative ministers have failed to act, with devastating economic shock waves that will reverberate for decades. 

“The Welsh secretary’s transition board looks more like a talking shop.

“Labour doesn’t want to see a single job go at the site, but Conservative ministers must up their game and prepare at much greater speed to protect workers and communities.”

Tata Steel’s proposed changes have triggered huge backlash, with around 1,500 workers voting to strike for the first time in 40 years. 

However, the company said even more jobs would be lost without the operational updates, with its UK operations allegedly making combined losses of “£1.7m a day”.

Bosses have warned workers they would lose the “enhanced” redundancy package that was on offer if they went ahead with industrial action.

Read more

Zero-hour crackdown could wipe out seasonal work, Labour warned

Labour MPs are being warned a “perfect storm” of costs facing the retail sector could see seats lost to Reform UK.

A Tata spokesperson said: ‘We understand how difficult this period is for our employees and we are determined to support them as much as we can.

“That is why we have committed to our most generous voluntary redundancy package, which will mean an employee earning £40,000 per annum with 25 years of service could be eligible to receive a total payment of £55,000.

“Via the Transition Board, we are also investing £20m – together with £80m from the UK Government – which will provide new training, reskilling and help finding work as well as a plan for local regeneration and economic growth for the next decade.

“We are grateful for the Transition Board’s support and expertise at a time when we are continuing discussions as part of the formal consultation period with our Trades Union partners.

“We are eager to progress to local consultation in order to give our people more clarity and certainty, and remain committed to working closely with all our regional and national stakeholders to ensure the best outcome for our workforce and wider communities.”

Alasdair McDiarmid, assistant general secretary for one of the unions representing the workers, Community, added: “It’s vital that all steelworkers affected by Tata’s damaging plans get timely access to training and job search support, and the Labour Party is right to press the company and government ministers on this.

“We are clear that this offer should be accompanied by an employment guarantee which ensures that those impacted receive wage support right up until they re-enter employment.

“We believe this would be the best use of the transition board’s considerable resources.”

A UK Government spokesperson said: “This government is supporting the steel industry more than any before it and has put in place one of the biggest support packages in history, with a £500 million grant as part of the £1.25 billion commitment by Tata Steel to secure 5,000 jobs across the UK and safeguard the future of the Welsh steel industry.

“This includes the £100 million awarded to the Port Talbot Transition Board, including £80 million in UK Government funding, which is investing directly in skills, training and job creation for the workers affected. Without government action, many thousands more jobs would have been lost at Port Talbot and in the wider supply chain.”

Read more

UK manufacturers facing ‘steel quota cliff edge’

The steel industry has been particularly badly hit by rising energy costs

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Energy

People & Organisations

  • Energy
  • ESG
  • Industrial
  • Labour
  • steel
  • Tata Steel
  • unions

Related Topics

  • employment and wages
  • Labour Party
  • UK Government
  • UK jobs, employment and wages
  • Unemployment

Trending Articles

  • Reeves’ new tax charge on cash ISAs faces fierce industry backlash

  • As it happened: Stocks recover after markets rocked by tech-sell off; US claims ‘good foundations’ of Iran deal

  • Revealed: Secret Treasury plan to tax State Pension before it is paid out

  • Burnham’s new chief of staff ran City firm advising Thames Water and rival Heathrow bidder

  • As it happened: FTSE 100 scrapes into green after Segro’s surge; Oil at pre-war levels after Trump snaps at industry

More from City PM

  • Zero-hour crackdown could wipe out seasonal work, Labour warned

    Retail
    Labour MPs are being warned a “perfect storm” of costs facing the retail sector could see seats lost to Reform UK.
  • UK manufacturers facing ‘steel quota cliff edge’

    Industrials
    The steel industry has been particularly badly hit by rising energy costs
  • Nearly half of retail workers considering quitting over mental health

    Retail
    Whitfield will replace outgoing chair Andy Higginson.
  • More than 80 retail bosses urge Starmer to tackle youth unemployment crisis

    Retail
    Labour MPs are being warned a “perfect storm” of costs facing the retail sector could see seats lost to Reform UK.
  • Fuller’s slams ‘unprecedented government interference’ in pub sector

    Hospitality
    Simon Emeny, CEO of Fullers, delivers a keynote speech at a business conference, emphasizing leadership and industry insig...
  • Jobs crisis: UK unemployment to hit highest level in a decade

    Business
    London office workers collaborating on AI and tech projects, surrounded by computers and digital interfaces in a modern wo...
  • Making the jump to self-employment could damage your pension savings

    Personal Finance
    In 2022, rolling Tube strikes led to massive queues for crowded buses. (Photo by Chris J Ratcliffe/Getty Images)
  • £4.5bn black market cigarette tax loss should be ‘a major wake-up call’ for Labour

    Tax
    Getty Images logo displayed on a digital screen, symbolizing media and content licensing in a business context

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM. All rights reserved.
About · Contact · Terms · Privacy