Tata Steel warned it may shut the Port Talbot steelworks earlier than first announced over strike plans.
Workers at the steel plant in south Wales were told that a strike threat from Unite union members from 8 July meant the company could close or pause two blast furnaces because of safety concerns.
As many as 2,800 workers will lose their jobs when the furnaces shut under existing plans.
The company has said it will bring the final closure date forward to 7 July, from September, as Unite members at the steel plant plan to strike on July 8. Tata’s original plan was to close one blast furnace this month and the second in September.
The company has sought exemptions from the strike to enable minimum levels of staffing to allow iron and steel making to continue safely.
A Tata spokesperson said: “Following the announcement by Unite union to unilaterally call strike action from 8 July, Tata Steel is unfortunately forced to commence legal action to challenge the validity of Unite’s ballot.
“In the coming days, if we cannot be certain that we are able to continue to safely and stably operate our assets through the period of strike action, we will not have any choice but to pause or stop heavy end operations [including both blast furnaces] on the Port Talbot site.
“That is not a decision we would take lightly, and we recognise it would prove extremely costly and disruptive throughout the supply chain, but the safety of people on or around our sites will always take priority over everything else.”
The Unite union said Tata’s statement to shut or pause the blast furnaces three months earlier than intended was the latest in a long line of threats and it would not deter them.
Sharon Graham, Unite’s General Secretary said: “Unite is fighting for the future of the steel industry. We have secured serious investment from Labour to safeguard jobs.
“Our campaign is not about selling jobs, it’s about securing the long-term future of steel making in this country for thousands of workers in Port Talbot and South Wales.
“We call on the real decision makers in Mumbai to take hold of this dispute, sit down, negotiate and realise that the investment secured will be good for the company and workers.”
The Welsh government said it opposed the closures and its Economic Secretary Jeremy Miles met with Tata management after the news emerged.
Vaughan Gething, Wales First Minister said: “The news that Tata could switch off Blast Furnaces 4 and 5 at Port Talbot next week is extraordinary and will cause huge anxiety for the workforce, their families and the community.
“The Welsh Government cannot and will not support the closure of both blast furnaces. As we have said many times, the company should wait for the outcome of next week’s General Election before taking irreversible decisions.
“Acting whilst the nation goes to the polls does not help to deescalate matters. The Cabinet Secretary for Economy, Energy and Welsh Language held talks with the company earlier today. Urgent and good faith negotiations are now required to ensure safety at the site and avoid an outcome that would have such a severe and lasting impact on Port Talbot, Wales and the UK.”
Unite said last week that around 1,500 workers would begin an indefinite strike from July 8 over Tata’s plans to close two blast furnaces and cut up to 2,800 jobs.
Charlotte Brumpton-Childs, of the GMB union said: “This is a sad day for steel. Tata must step back from this irreversible decision and safeguard steelmaking assets. There’s a general election in days that could change so much.
“We know there is a future for steelmaking in South Wales. That future must be preserved. GMB’s next actions will be decided by our members.”
Labour has made a stronger offer of support for the industry if it wins the general election and has called for Tata to look again at a plan put forward by the Community and GMB unions to keep one of the blast furnaces running until the electric arc furnace Tata is proposing to build is operational. Tata rejected the plan saying it wasn’t affordable and didn’t work operationally.
Tata said it will invest about £750m to build the electric arc furnace and the Government has pledged taxpayer support of £500m to build greener steel and reduce carbon emissions. The company has said previously its UK operations were losing more than £1m a day.
The Indian-owned multinational reportedly accepted a union plea to keep the hot strip mill open over a transition period, supporting hundreds more jobs.
Dr Simon Cran-McGreehin, at the Energy and Climate Intelligence Unit (ECIU) said: “This news will obviously be hugely concerning to workers at the plant, and it did not have to be this way. A planned transition to future-proof technologies, including hydrogen, could have saved many more jobs. There are already around 30 green steel plants projects globally; without a proper plan, the UK is falling behind in the development of green steel manufacturing.”