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Tuesday, March 29, 2016

Tata Considers Selling UK Steel Operation

Tata Steel has confirmed it is looking into selling its entire UK steel operation, casting doubt over the future of at least 15,000 steelworkers across the UK.

Unions have reacted to the news with shock and anger after the decision was taken at a company board meeting in Mumbai, India.

They had been hoping Tata would agree a plan to keep steelmaking in Port Talbot and other UK plants. Among the other plants that will be affected are Rotherham, Corby and Shotton.

The Community Union is calling for an urgent meeting with David Cameron, warning the UK is "now on the verge of a national crisis".

Tata announced more than 1,000 job cuts in January, including 750 at Port Talbot in south Wales.

In a statement, Tata said the board had unanimously concluded a plan aimed at saving plants including Port Talbot was unaffordable, adding it had been in "deep engagement" with the Government in seeking its support for the UK business.

"Following the strategic view taken by the Tata Steel Board regarding the UK business, it has advised the board of its European holding company ie Tata Steel Europe, to explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts," the company said.

Labour MP Stephen Kinnock, who is with union delegates in India, told Sky News that while it was "disappointing" Tata had not supported a rescue plan, it was good news they were looking for potential buyers.

He said: "That is the most important thing: that Port Talbot continues to produce steel."

Labour leader Jeremy Corbyn said he was "deeply concerned" by the news and called on the Government to intervene as a matter of urgency, possibly by taking a public stake in the industry.

David Hulse, national officer of the GMB union, said: "The Government needs to act now and support the steel industry. We are fed up with the false promises.


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