Unite, the UK’s leading union, is preparing to escalate industrial action at Port Talbot and Llanwern after Tata showed its true colours and threatened to cut redundancy pay in response to the announcement earlier this week that Unite members will begin an overtime ban and work to rule later this month.

In a further significant threat Tata has told workers that next month’s general election will not affect it plans to close its blast furnaces. It said: “Neither the general election nor its outcome has any impact on the timings or our decision to proceed with the winding down of our heavy-end operations (blast furnaces).” In the same communication the company has threatened  “to bring forward” the closure of blast furnaces.

The company’s statement on its closure plans is a direct rebuff to the Labour Party, which is committed to creating a £3 billion investment steel fund to preserve steel making in the UK. On Thursday when launching Labour’s campaign in Wales, Labour leader Keir Starmer said on Tata: “I will fight for every single job and fight for the future of steel in Wales.”

Unite general secretary Sharon Graham said: “Unite and its members will not tolerate Tata’s bully boy tactics and neither should Labour. The union is now preparing to escalate industrial action in direct response to the company’s threats.

 “The company is trying to hold the country to ransom, while needlessly throw thousands of workers on the scrapheap. If Tata is not prepared to do the right thing, then an incoming Labour government must ensure it does.

 “Tata’s actions show the fundamental problem with private multinational companies owning the UK’s foundation industries. It has no concern for the long-term economic damage and harm its action will cause in the UK.”

The redundancy pay cut threat was part of an extraordinary 900 plus word communication to Tata workers sent by chief executive officer Rajesh Nair that was sent late on Friday evening (31 May) to the company’s workforce (see notes to editors for full details.)

Unite believes that the threat of speeding up the closure of the blast furnaces is the latest part of Tata’s plans to turn Port Talbot into a satellite site for at least the next five years, while it imports hot rolled coil and slab steel, from India and its other overseas operations and badges it as produced in the UK.

Unite secretary for Wales Peter Hughes said: “Workers will not be blackmailed. Unite never takes a backward step in supporting our members in their fight to preserve their jobs pay and conditions and the workers at Tata have the union’s complete support.”

ENDS

Notes to editors:

Tata communication in full

To all Tata Steel UK employees from CEO Rajesh Nair

UK Steel Committee discussions

I wrote to you last Friday (24 May) and outlined the additional enhancements to the employee support terms that were put forward, in good faith, by the company to bring our discussions on a potential Memorandum of Understanding (MoU) with all unions of the UK Steel Committee (UKSC) to a conclusion.

At the time I was hopeful, given the nature and tone of the discussions, that the enhanced employee support terms, as well as assurances about the future aspirations for our business would enable us to bring matters to a conclusion and enable all trades unions to put forward the details of the MoU to their members for consideration.

Unfortunately, it has subsequently become clear that there is not currently an agreed way forward with all the unions of UKSC.

Unite notice of Industrial Action

I am extremely disappointed to have received notice yesterday of industrial action from Unite.  This notice is for action short of a strike to commence from 06:00 18th June.

Throughout the consultation process, we have engaged fully and meaningfully with the UKSC, substantially enhancing the existing employee support terms, in order to enable a conclusion.  Unite have been present in all these discussions.

As you are aware we have written to Unite several times since the start of their ballots, including as recently as the start of this week, to re-iterate the substantial irregularities and errors in their ballots in Port Talbot and Llanwern.

In light of the latest notice of industrial action we will now discuss options for legal action on these irregularities. This would be with the intent for a court to confirm the errors, rendering the Unite ballots and their outcome invalid and therefore that any industrial action taken on the back of the ballots would be unlawful. Any employee taking unlawful industrial action could render themselves in breach of contract.

To be clear, any form of industrial action will only serve to hurt Port Talbot, Llanwern and the wider Tata Steel business. It will damage our vital reputation with customers and it risks our transformation and future sustainability.

The proposed Employment Support Package proposal is the most favourable package of support our business has ever offered and it comes at considerable cost.  We have worked hard, through extensive discussions with the UKSC, to put this proposal forward. The costs that industrial action will bring, along with the damage it will cause to the business’ reputation means that, as I have communicated before, we may be unable to continue to support this package. 

I would urge Unite to reconsider its position, withdraw the industrial action notices and to put forward, along with all other unions of the UKSC, the details of the MoU and enhanced employment support package to their members for consideration and decision.

VR aspiration process

I wrote to you on 15th May about our decision to defer the opening of the wider VR aspiration process.

We will now begin to make arrangements for this wider VR aspiration process to progress from the end of next week.

Unfortunately, given the damage being incurred to the business as a result of notice being served and the potential further disruption associated with any industrial action, we feel we are being left with little alternative but to reluctantly replace the enhanced employee support arrangements and revert to lesser terms.  This will be reflected in the financial details employees will see in their VR aspiration form.

I know this will be a disappointment to many, and it is not a decision we are taking lightly, but the latest developments and impact on the business means there will be little alternative.

However, if all unions decide to put the discussed enhanced employee support terms and business assurances to their members for consideration, while suspending any notice of industrial action, then we expect that we will be able to offer the enhanced employee support arrangements, which I have previously communicated with you.

I am acutely aware that all of you are keen to understand the potential impact on you and your colleagues, and that you are frustrated at the lack of information available about this.

We have deferred local briefings on these points several times to allow more time for discussions, but I feel it is not right to defer these briefings any further.  Therefore, prior to the opening of the VR aspiration process, the intention is that local area/functional briefs on the proposed changes and re-organisation will be held with employees in those areas. These proposals will be subject to the remaining consultation processes.

Ceasing heavy-end operations

I realise there continue to be questions arising from the announced General Election. To re-iterate, neither the general election nor its outcome has any impact on the timings or our decision to proceed with the winding down of our heavy-end operations. Furthermore, in light ongoing impact on the business and the potential for further disruption, especially if we are unable to fully resource the assets and ensure safe and stable operations we will be reviewing whether we should now plan to bring forward the dates for the closure of BF5 and the winding down of operations across the wider heavy-end.

I know this is a difficult time for everyone and I hope we are able to avoid further disruption to our business and that all of the trades unions will present the details of the MoU to their members for consideration.

I will continue to keep you updated.

For media enquiries ONLY please contact Unite senior communications advisor Barckley Sumner on 07802 329235.

Email: barckley.sumner@unitetheunion.org

Twitter: @unitetheunion Facebook: unitetheunion1 Instagram: unitetheunion Web: unitetheunion.org

Unite is the UK and Ireland’s leading union fighting to protect and advance jobs, pay and conditions for members working across all sectors of the economy. The general secretary is Sharon Graham.