GRAHAM HISCOTT Jobs to go in Tata merger Steel tie-up threatens 4,000 staff

UP to 4,000 job losses are expected under a planned merger of Tata Steel and a German rival.

Tata, which owns the Port Talbot steelworks in South Wales, hopes to create a joint firm with Thyssenkrupp.

But the move is set to see 2,000 production jobs culled, with a review of the joint firm’s 38 sites looked at from 2020 onwards. Another 2,000 office jobs are also expected to go.

Thyssenkrupp warned that the outcome of Brexit talks and “the implications that follow” would play a part. Neither firm gave more detail about job losses, apart from claiming they would be spread evenly between the two companies.

Guido Kerkhoff, Thyssenkrupp chief financial officer, insisted: “If both companies stand alone, the volume of the redundancies would be higher.” The firms employ around 48,000 workers.

Merger talks started 18 months ago Imperial Leather soap maker PZ Cussons has been slammed for allowing boss Alex Kanellis to earn up to 300% of his salary in bonuses.

Shareholder advisory group PIRC called the set-up, which could see Kanellis rake in £1.6million in annual and long-term bonuses, “excessive”. after Tata decided not to sell its UK steel business.

However, a deal last month for Tata Steel to offload its £15bn pension scheme paved the way for yesterday’s announcement.

Andrew Robb, chairman of Tata Steel Europe, said the tie-up would create “a global leader for the long term”.

Roy Rickhuss, general secretary of steelworkers’ union Community, said: “As always, the devil will be in the detail and we are seeking further assurances on jobs, investment and future production across UK operations.”

Local Labour MP Stephen Kinnock said: “It’s very good to see the clear long-term commitment to

Port Talbot.”