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The employees union of Tata Steel UK has warned the company against conducting fire sale of its more profitable speciality steel business, leaving the Port Talbot and UK strips plants in the lurch.
In a letter written to the Tata Steel management, Unite, Britain’s largest employees union, has asked Tata Steel to give binding commitment on the future of Port Talbot and its UK steel strips business.
Unite is Britain and Ireland’s largest trade union with over 1.4 million members working across all sectors of the economy.
The development follows unconfirmed reports quoting that the steelmaker was planning to pause its proposed sale of loss-making UK units, while going ahead with a separate sale of its speciality steel business and tubes operation.
The board of directors of Tata Steel are expected to meet on Friday to discuss sale of its UK business, said the report.
Sajid Javid, the UK Business Secretary, is in India to meet the Tata Steel officials.
Reminding Tata Steel of its promise to act responsibly, Unite warned the company against ducking its promises and conducting a ‘fire sale’ of its speciality steel business, while allowing Port Talbot and its UK strips business to ‘wither on the vine’. In addition to demanding guarantees over the long-term future of Port Talbot, Unite said it would be seeking further detail and assurances from Tata and prospective buyers over the sale of the speciality steel and tube business.
Harish Patel, National Officer, Unite, said the cloud of uncertainty over steelworkers’ heads needs to be lifted by Tata giving binding commitments about its long-term intentions regarding Port Talbot and its UK strips business.
“We cannot be in a situation in three to four years’ time where Tata walks away from Port Talbot after leaving it to wither on the vine following a tie up with ThyssenKrupp in Europe.
The Tata board needs to be aware that such a scenario would leave Tata’s reputation as a responsible employer in tatters.
“If Tata is to retain the goodwill of the workforce then its board needs to give guarantees over Port Talbot and assurances that it won’t conduct a fire sale of its speciality and tubes business.
“Port Talbot and the UK strips business can have a viable and profitable long-term future with the right investment.
“They have a world-class workforce making world beating products,” he said.
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