Current:Home > FinanceAround 3,000 jobs at risk at UK’s biggest steelworks despite government-backed package of support -Wealth Nexus Pro
Around 3,000 jobs at risk at UK’s biggest steelworks despite government-backed package of support
View
Date:2025-04-16 07:00:03
LONDON (AP) — Around 3,000 workers at Britain’s biggest steelworks face the prospect of losing their jobs as part of a government-backed package Friday to make the plant “greener.”
In an announcement, the British government confirmed widespread speculation that it is to pump up to 500 million pounds ($620 million) into the Port Talbot steelworks in south Wales.
Tata, the Indian conglomerate that owns the steelworks, will use the funding to help switch the plant’s two coal-fired blast furnaces to electric arc versions that can run on zero-carbon electricity.
“This proposal is a landmark moment for maintaining ongoing U.K. steel production, supporting sustainable economic growth, cutting emissions and creating green jobs,” said Treasury chief Jeremy Hunt.
Tata, which employs around 8,000 people across the U.K., will also invest around 750 million pounds into the project, but cautioned that the plans will lead to consultations over a “deep potential restructuring” — code for job losses.
In a separate statement Friday, Britain’s Department for Business and Trade said the deal will only safeguard around 5,000 jobs out of Tata’s total workforce.
Tata said the deal lays out a future for sustainable steel-making in the area and committed to undertake a “meaningful” consultation with unions.
“With the support of the U.K. government and dedicated efforts of the employees of Tata Steel U.K. along with all stakeholders, we will work to transform Tata Steel UK into a green, modern, future-ready business,” said Tata Steel’s chief executive and managing director, TV Narendran.
The deal comes two months after Tata confirmed plans to build a 4 billion-pound battery factory in the U.K. after also getting subsidies from the government.
Unions were furious about the potential job losses.
“The cost to local people and the wider Port Talbot community will be immense,” said Gary Smith, general secretary of the GMB trade union. “Once again, we have the spectacle of leaders talking up the fantasy land of a ‘just transition’ while the bitter reality for workers is them getting the sack.”
The 1.25 billion-pound furnaces are expected to be up and running within three years of getting regulatory and planning approvals.
Tata warned last year that its U.K. operations were under threat unless it secured government funding to help it move to less carbon-intensive electric arc furnaces.
Luke Murphy, head of the fair transition unit at the Institute for Public Policy Research think tank, said the government had “ignored or abandoned” the interests of unions and workers.
“The use of coal in steelmaking must come to an end but this looks like a bad deal for workers, the wider community in Port Talbot, and for Britain,” he said.
He noted that Germany has invested over $53 billion in decarbonising heavy industry and has committed to work with unions and protect jobs.
“The U.K. has nothing like the scale of this commitment and has done nothing to make conditions more favourable for investment,” he added.
veryGood! (96995)
Related
- Federal Spending Freeze Could Have Widespread Impact on Environment, Emergency Management
- Casey Kaufhold, US star women's archer, driven by appetite to follow Olympic greatness
- Olympics meant to transcend global politics, but Israeli athletes already face dissent
- Days before a Biden rule against anti-LGBTQ+ bias takes effect, judges are narrowing its reach
- Biden administration makes final diplomatic push for stability across a turbulent Mideast
- Lawsuit against Texas officials for jailing woman who self-induced abortion can continue
- Allergic reaction sends Filipino gymnast to ER less than week before she competes
- Exclusive: Tennis star Coco Gauff opens up on what her Olympic debut at Paris Games means
- North Carolina justices rule for restaurants in COVID
- Multiple crew failures and wind shear led to January crash of B-1 bomber, Air Force says
Ranking
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- UN Secretary-General Says the World Must Turbocharge the Fossil Fuel Phaseout
- Are schools asking too much for back-to-school shopping? Many parents say yes.
- Cindy Crawford Weighs in on Austin Butler’s Elvis Accent
- Buckingham Palace staff under investigation for 'bar brawl'
- Olympians Are Putting Cardboard Beds to the Ultimate Test—But It's Not What You Think
- Home goods retailer Conn's files for bankruptcy, plans to close at least 70 stores
- House Republicans vote to rebuke Kamala Harris over administration’s handling of border policy
Recommendation
Sam Taylor
Olympic soccer gets off to violent and chaotic start as Morocco fans rush the field vs Argentina
Meta’s Oversight Board says deepfake policies need update and response to explicit image fell short
An 11-year-old Virginia boy is charged with making swatting calls to Florida schools
Meta releases AI model to enhance Metaverse experience
Rob Lowe’s Son John Owen Shares Why He Had a Mental Breakdown While Working With His Dad
Inside Christian McCaffrey’s Winning Formula: Motivation, Focus & Recovery
Taylor Swift's BFF Abigail Anderson Is Pregnant, Expecting First Baby With Charles Berard