Proactive Investors - Tata Steel (LON:TISCq) looks set to axe thousands of jobs at its Port Talbot site in Wales after the company confirmed a cross-union plan to save roles had been rejected.
Unite and Community were among unions to meet with Tata on Thursday to table an alternative plan, though this was rejected, prompting calls for industrial action.
“Having looked carefully at all the options over the past seven months in consultation with union representatives, we have decided to proceed with our proposed restructuring,” The Tata Steel chief executive TV Narendran said.
“This is the most viable proposal, in contrast to the unions’ unaffordable plan, which has high inherent operational and safety risk.”
Some 2,800 jobs are set to be cut under Tata’s plans to shut two blast furnaces at Port Talbot, with these set to be replaced by electric alternatives as part of a £1.25 billion investment.
Unions had called for the blast furnaces to be kept in operation as the replacements were built, in turn saving jobs.
However, Tata doubled down on plans to close these in the coming months, before replacements were ordered in September ahead of a scheduled opening in August 2025.
“We do not accept the company’s assertion our plan was too expensive,” Community general secretary Rickhuss said on Thursday.
“In fact, it would have returned the company to profits.”
Community subsequently called on members to back a ballot which would allow strikes, while Unite also said industrial action would take place in response to Tata’s plan.
Tata Steel added a voluntary redundancy scheme would be opened on 15 May in the meantime.