Cabinet Secretary for Economy says Tata chose to ignore multi-union report
TATA STEEL has confirmed to the Welsh Government plans to close its two blast furnaces at Port Talbot, transitioning to electric arc furnace steelmaking as part of a £1.25bn strategy. This move is set to impact approximately 2,800 jobs, with major implications for the local community and wider Welsh economy.
Jeremy Miles MS, Cabinet Secretary for Economy, Energy and Welsh Language, expressed deep disappointment over the company’s decision to disregard the multi-union report’s recommendations for a more sustainable transition. This report, commissioned by the UK Steel committee, had advocated for measures that would reduce the environmental impact of steel production while considering the workforce’s welfare.
The phased closure will begin with Blast Furnace 5 in June, followed by
Blast Furnace 4 and other heavy assets by September’s end. Over the next 18 months, the first wave of job reductions will take effect, beginning this July, with further losses anticipated at the Llanwern site over the next two to three years.
The Welsh Government has criticised the pace of the transition, suggesting that a more extended consultation period between Tata and the unions might have mitigated the scale of job losses. As the company prepares for a threeyear transition period, it will rely heavily on steel imports to meet customer demands, a move that raises concerns about the future of local production capacity.
Miles underscored the strategic importance of the Welsh steel sector, not only for the local economy but also as a vital component of the UK’s industrial landscape. He urged Tata Steel to avoid compulsory redundancies and to collaborate closely with the Transition Board to provide the necessary support, including reskilling and employment opportunities for the affected workers.
The confirmation of the shift has prompted significant unrest among the workforce, with unions balloting for potential industrial action. Tata has set conditions on its voluntary redundancy packages, which are subject to ongoing negotiations along with future investment commitments.
The Welsh Government remains committed to supporting the steel industry, emphasizing the need for a clear and substantial investment vision that will ensure the sector’s sustainability and the prosperity of its workforce. The transition board has already initiated various support mechanisms, including job fairs, advisory sessions, and a comprehensive action plan to cushion the economic impact on the community.
This transition marks a challenging new chapter for Port Talbot and the entire Welsh steel industry, with long-term implications for the regional economy and its people.
Commenting, Welsh Conservative Shadow Economy Minister, Samuel Kurtz MS said: “The disappointment felt by those losing employment at Tata cannot be understated. We need to support our steelworkers, not just with warm words, but with skills, retraining and jobs.
“We have been clear that we want to see a blast furnace remain open in the transition to electric arc furnaces and we need to take full advantage of the opportunities that the new Celtic Freeport will bring.”
In a joint statement following their respective contributions in response to the statement, local Senedd Members for South Wales West, Tom Giffard MS and Dr Altaf Hussain MS added: “We need to support our communities in and around Port Talbot more than ever following the disheartening news from Tata.
“It is a matter of deep regret that the Labour Welsh Government have yet to put a single penny on the table to support the UK Conservative Government-funded transition board. We need more detail from Labour as to what they are actually doing to back the workforce.”