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Workers union seeks govt support to Tata Steel UK plant

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Press Trust of India London
Last Updated : Apr 04 2016 | 11:32 PM IST
Seeking British government's support to continued operations at Tata Steel UK's plants, a workers' union said that the facilities are viable but they need investments for "self-sustainability".
"There needs to be a step-change in the level of government involvement with Tata, its customers and the unions," GMB General Secretary of Community Roy Rickhuss said in a statement.
Tata Steel today said it is working on a "priority" basis to complete review of its entire European operations, including UK's largest steel plant at Port Talbot.
The move by one of the world's largest steelmakers to sell its business has threatened over 17,000 jobs in the UK amid a deepening crisis in the sector that the Indian conglomerate entered with much fanfare nearly a decade ago with USD 14-billion takeover of the Anglo-Dutch Corus.
Rickhuss said that the government needs to reassure the customer base of the plant are not lost.
"Second they need to make it clear to Tata that the integrity of the business must be maintained, Tata must be a responsible seller and they must allow time for a deal to be done. Finally, the government must invest in our steel industry to give it a future," Rickhuss said.

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One hundred steelworkers from across the UK gathered at the TUC's Congress House to formulate a plan for their industry following Tata Steel's decision to divest its UK assets.
"There is no time for further delay from this government. They need to be loud and clear to instill confidence in customers and steelworkers that this business will have a future," GMB National Officer Dave Hulse said.
As per the union, the plants are viable but they require investment and the issue is not competing on cost but the attractiveness of the product range.
"This means the business needs the investment originally planned by Tata - understood to be GBP 1.5 billion over 10 years. This level of investment should be achievable given that any buyer would be gaining control of assets worth GBP 4 billion," the statement said.
Government support is needed to bridge the 2-3 years it will take to get back to self-sustainability, the statement said.
GMB said that the steel plants require Green investment to make Port Talbot a world class example of low-carbon, blast furnace steel making, R&D investment to enable the business to develop high value products and skills investment to support a transition to high-value, low carbon steel production.

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First Published: Apr 04 2016 | 11:32 PM IST

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