Tata Steel says it will continue to financially support its UK operations as its major unions voted to accept radical pension proposals to safeguard jobs in the critical supply sector.
Intense speculation surfaced last year as to whether or not Tata Steel would pull the plug on its British operations altogether, but a collective of powerful UK labour bodies, including Unite, Community and the GMB, all voted for pension sacrifices in exchange for increased UK investment and job security.
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“We are committed to finding a sustainable future for steel in the UK,” a Tata Steel spokesman told just-auto as the supplier unveiled a new tailor welded blanks line in the UK. “But we are not blind to the fact there are an awful lot of external factors at work.
“We will continue to make investments to deliver that sustainable future and at the same time, take all necessary actions with the business to give it a sustainable future.”
The British government had came under huge pressure to act last year as UK steel faced significant dumping challenges and climate change policy costs, resulting in Tata Steel receiving a GBP50m compensation package, but news unions have accepted the deal, albeit reluctantly, will come as a major relief to London as it looks to shore up manufacturing ahead of leaving the European Union (EU).
“We continue to engage with government – we have done so for a long time – we work with all administrations,” added the Tata Steel spokesman. “We also work very closely with UK Steel and EEF [British Manufacturers Association] – that becomes even more important now we are in an industry that is not just us.
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By GlobalData“It is British Steel, it is Liberty, Sheffield Forgemasters, it is a multi-player game now. We always seek opportunities, both domestically and abroad, because we are a pan-European company.
“We have not got a crystal ball – we cannot see what Brexit will be but we will continue to engage with governments and across Europe to seek opportunities and reduce potential negative impacts.
“Our automotive customers both in the UK and in mainland Europe are not always UK companies. Nissan is a prime example and the same applies for BMW.
“As any business, you have to look at the potential upsides [of Brexit] – no-one should be wallowing in the what-ifs and downsides of it.”
Hailing the unveiling of a new line for tailor welded blanks at the company’s Automotive Service Centre in Wednesfield, in the UK’s West Midlands region as evidence of “how highly skilled the the steel industry is,” the Tata spokesman also emphasised the importance of apprenticeships to the materials supplier.
“Apprentices [are] our future,” he said. “People can be very proud of the UK’s part in changing the global shape of engineering from James Watt to sending [a] Ranger up to Mars.
“We can show we have cutting edge technology – a lot of people think it is old-fashioned but our steel goes into everything in your life.
“Aluminium is not a threat – we process aluminium here. Carmakers are still using lightweight steels. These steels can easily outperform aluminium in many circumstances.”
The three unions involved in Tata Steel’s deal each returned an almost three-quarters favourable vote for the agreement, with 69% and 71% turnout for the Unite and Community labour bodies, as well as 52% for GMB.
“This is not a decision our members have taken lightly,” said Unite national office, Tony Brady. It has been a hellish time for them, their families and their communities as uncertainty has swirled around the steel industry over this past year or more.
“During that time, steelworkers have made great sacrifices to ensure the UK’s wold class steel industry has a future. Those sacrifices just be repaid by Tata Steel honouring its commitments on investment and job security.
“Nothing less would be a betrayal and add to the deep mistrust steelworkers now have for the company. The UK government must also repay the sacrifices.
“Recent talk of steel being a low priority for UK government Ministers in Brexit negotiations is shameful.”
