Labour politicians have been urged to step in to help avert a “costly mistake” by Tata Steel, which has told staff it could close operations at its steel plant in Port Talbot just days after the general election.
The Indian owner of the vast south Wales steelworks said on Thursday that it intended to cease operations at two blast furnaces on the site by 7 July – three days after the general election – in response to strike action announced by Unite members from 8 July. The company had planned to shut one furnace by the end of June and a second by September.
About 1,500 workers across Port Talbot and another site at Llanwern intend to strike over Tata’s decision to close its blast furnaces, cutting 2,800 jobs.
The company said: “We cannot be certain that we are able to continue to safely operate our assets in a stable fashion through the period of strike action.”
A Tata Steel spokesperson called on Unite to cancel the industrial action and said it had began legal action to “challenge the validity of Unite’s ballot”. Tata called on Unite to consider “the company’s proposed memorandum of understanding, which puts forward a wide-ranging proposal including generous employee support packages, training, and skills development”.
The decision has angered politicians and unions, who have argued that the Tata should wait until after next Thursday’s general election, which Labour is predicted to win.
Rachel Reeves, the shadow chancellor, and Jonathan Reynolds, the shadow business secretary, have pledged up to £3bn to support the industry’s transition to low carbon steel production, which is expected to include honouring an existing £500m package of government support for Port Talbot. A new electric arc furnace will be built by the end of 2027.
Torsten Bell, the former chief executive of the Resolution Foundation thinktank who is standing as Labour candidate for Swansea West, said on X that Tata’s decision was “incredibly worrying”.
He wrote: “Safety is of course paramount but Tata should avoid taking any action that cannot be reversed before seeing the result of the general election.
“We need to see everyone getting round the table. It is crucial we don’t lose the chance for the company and unions to sit down with an incoming Labour government, given the commitment from [Reynolds] and [Reeves] to a £2.5bn steel renewal fund.”
Onay Kasab, Unite’s national lead officer, said the union had asked for a meeting to discuss how to operate the site safely during the industrial action – the first steel strikes in 40 years – since it was called last week. He said that meeting had happened on Friday morning and safety plans were still being discussed with the company.
Kasab said: “To issue that statement last night knowing full well the meeting was today – it’s about trying to create fear and uncertainty among the workforce. Safety is paramount. Our argument is that the blast furnace does not have to be turned off before the electric arc furnace comes on, so of course we are not going to take action which means it is turned off.
“We are calling for the decision-makers in Mumbai to get involved in the discussions and we want Labour to stick to their commitment.”
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Alun Davies, the national officer for steel at the Community union, said: “We went ballistic when we saw the communication and asked for an urgent meeting. Reynolds needs to sit down with the company to see to quickly put things in place.”
Keir Starmer, when launching Labour’s election campaign in Wales last month, said he would “fight for every single job and fight for the future of steel in Wales”.
Vaughan Gething, leader of Welsh Labour, said: “We will not support the closure of both furnaces. This will cause huge anxiety for the workforce, their families and the community. He added: “Urgent and good faith negotiations are required to ensure safety on site and avoid a severe and lasting impact on Port Talbot, Wales and the UK.”
Greenpeace UK’s head of climate, Mel Evans, said: “Tata should be listening to its steelworkers, not slamming the door behind them as soon as they threaten to walk out.
“A better deal for green primary steelmaking is possible, and with less than one week to go until the UK elects a new and, potentially, more sympathetic government, closing the steelworks before those newly elected ministers have sat down at the negotiating table is a costly mistake.
“It will have devastating consequences for the thousands of steelworkers set to lose their jobs, for the local community, and for steel production in the UK.”