Industry steels itself for more job losses

Unions in talks with Chinese firm over rescue plan

YORKSHIRE, the West Midlands and the North East have borne the brunt of the 4,000 steel industry job losses over the past decade, according to the GMB union.

Its analysis of Office for National Statistics figures found that the number of people employed by Britain’s steel industry fell 10.8 per cent between 2008 and 2018 to 33,000. Yorkshire and the Humber was the region that lost the most jobs, down 1,700 or 14.8 per cent to 9,800.

Next was the West Midlands, where a third of the workforce or 1,650 positions was cut down to 3,350. The North East in third place lost 1,340 jobs, a fall of 28 per cent, leaving 3,450 still working in the steel business.

Last Thursday, Liberty Steel said that it was axing 350 jobs and more could follow soon at British Steel as part of a rescue of the company by Chinese group Jingye. The GMB urged the Government to do more to protect the British steel industry and said it should keep all options on the table, including nationalisation.

“Consecutive governments have failed to protect our proud steel heritage,” GMB national officer Ross Murdoch said. “Ministers must be prepared to make use of all the options, including nationalisation, to save our steel industry.”

He added: “We need a genuine commitment to manufacturing in the UK which focuses on investment in infrastructure and improvements to technology and training. It’s time the Government took its hands out of its pockets and stood up for steel.”

The ONS figures showed that Wales gained 600 jobs over that period, an increase of 7.8 per cent, the biggest of any region in the country.the East of England saw a 62.9 per cent increase in steel jobs, up 440 to 1,140.

British Steel is in talks with Jingye about a rescue, eight months after it collapsed into administration. It is losing £1million a day and is being temporarily supported by the Government while rescue talks are ongoing.

Last week unions met officials from Jingye and said that while they were encouraged by the Chinese group’s plans to invest in the business, they fear that jobs will be cut. “Their proposals to turn around the business do include impacts on employment, and detailed discussions will now take place to fully understand Jingye’s plans and get a deal over the line,” they said.

“It cannot be just employees who are asked to make sacrifices.”

Jingye made its move for British Steel last November, after talks with a Turkish military pension fund broke down.