Tata Steel has delayed an announcement on job losses, causing uncertainty to thousands of jobs at Port Talbot, the UK’s largest steelworks.
The potential job cuts could affect up to 3,000 employees across the country.
The Welsh town, deeply intertwined with the steelworks, had braced itself for the closure of two blast furnaces.
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The move would mark a significant reduction in UK steel production.
An announcement was due on Wednesday, November 1, but Tata Steel abruptly cancelled a planned press conference, opting not to release any statements.
Instead, the company disclosed a £135 million loss in the last quarter, signaling a decline compared to the previous quarter, despite lower raw material costs.
Union representatives engaged in discussions with Tata on potential job cuts, but the company has yet to decide.
Reports suggest the reductions could occur as early as March, although Tata has not confirmed this timeline.
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Charlotte Brumpton-Childs, national officer at GMB trade union, said workers expected “a full and meaningful consultation before any detailed plans are announced”.
She said the unions would “offer a viable and reasonable alternative” that safeguarded jobs and created a “genuinely ‘just’ transition.”
Workers remain in the dark about Tata’s intentions and whether an announcement will come shortly.
The Indian conglomerate reportedly secured a £500 million government investment in September.
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It aims to transition from coal-powered blast furnaces to environmentally friendly electric arc technology.
Tata Steel is evaluating the number of employees required during the four-year transition to electric arc technology, potentially leading to some parts of the site being mothballed.
The job cuts would impact approximately 3,000 workers, primarily at Port Talbot, where the firm employs 4,000 people.
Tata Steel has a total of 8,000 employees in the UK.
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Port Talbot’s coal-powered furnaces greatly contribute to UK emissions, and the new technology requires fewer workers, likely causing job cuts.
While workers are hoping for alternative proposals put forward by the unions, they do not expect a permanent reprieve.
Executives in Port Talbot had prepared initial plans for closure, providing detailed briefings to the unions.
