Steel workers to vote over redundancy terms

Image source, Getty Images

Image caption, Steel workers are being balloted over Tata Steel's "best ever" redundancy deal
  • Author, Huw Thomas
  • Role, Business Correspondent, 麻豆社 Wales

Steel unions have begun balloting members on a redundancy package which will pave the way for thousands of job losses in south Wales.

Three unions representing workers 鈥 Community, Unite and the GMB 鈥 have finalised an agreement with Tata Steel over severance payments and future investment in steelmaking.

In a message to members, the Community and GMB unions said the agreement was the 鈥渂est that can be achieved through negotiation鈥 with Tata Steel.

The company has begun restructuring its operations to address losses and reduce its carbon emissions.

Tata Steel closed one blast furnace in Port Talbot in July and plans to close its second at the end of September.

The company has consistently argued that its blast furnace operations were losing 拢1m a day, and that its commitment to build a 拢1.25bn electric arc furnace would bring greener steelmaking to south Wales.

Roy Rickhuss and Charlotte Brumpton-Childs, the general secretaries of Community and GMB, told members that Tata Steel鈥檚 proposals would 鈥渞educe capacity and slash jobs鈥 and that the union had spent months negotiating the terms of any redundancy.

They said the agreement 鈥渋ncludes a number of key elements including significant enhancements to redundancy terms, a skills and retraining scheme, commitments to protect and fully load the downstream operations, and the assurances on future investments".

Image source, Reuters

Image caption, Tata Steel plans to switch off the second of two blast furnaces later this month

The decision to ballot members was the result of a commitment from all three unions to put the decision to a vote by the workers.

More than 2,000 workers have already expressed an interest in taking voluntary redundancy, the majority of whom are based at the UK鈥檚 largest steelworks in Port Talbot.

Tata Steel is planning to cut 2,500 posts during the current redundancy period, with a further 300 roles due to close in future.

The company has said that the redundancy terms are its best ever offer to staff.

Employees will receive 2.8 weeks鈥 salary for every year of service, up to a maximum of 25 years.

They will receive a guaranteed minimum payment of 拢15,000 and an attendance-related payment of 拢5,000.

Mr Rickhuss and Ms Brumpton-Childs said in a statement the imminent closure of Port Talbot鈥檚 second blast furnace meant it was 鈥渋mperative鈥 that workers were balloted now.

They told members that ballots had opened on Sunday and would close at midday on 16 September.

Workers were also told that an agreement had been reached between the UK government and Tata Steel, which is expected to confirm the 拢500m grant offered by the previous Conservative government towards the cost of Tata鈥檚 new electric arc furnace.

Further details of the government agreement are expected to be announced later in the week.