Unions are locked in crisis talks in a desperate bid to save 3,000 jobs as steel giant Tata prepares to shut blast furnaces at its biggest plant.
The firm is understood to have rejected plans aimed at saving jobs in Port Talbot in south Wales in order to press ahead with plans. The move has been described as a "crushing blow" for UK manufacturing and for the region's economy.
Charlotte Brumpton-Childs, GMB national officer, said: "Large-scale job losses would be a crushing blow to Port Talbot and UK manufacturing in general. It doesn't have to be this way - unions provided a realistic, costed alternative that would rule out all compulsory redundancies.
"This plan appears to have fallen on deaf ears and now steelworkers and their families will suffer." Unite general secretary Sharon Graham said: "As yet, Tata are still playing games with people's livelihoods.
"Whatever and however they announce their plans for Port Talbot, Unite will fight tooth and nail to defend steel workers and our steel industry. We have already clearly demonstrated how and why Tata should be expanding UK steel production in line with growing demand.
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"The Government now needs to step in and step up. This is the time to defend British workers and communities, as well as our industrial base and our national security.
Tata Steel is poised to announce its blast furnaces will close, costing 3,000 jobs (Jonathan Myers)"More managed decline can only help the UK's competitors, steel producers in other countries. Politicians need to make the right choices now or they will not be forgiven easily."
An alternative plan put together by the Community and GMB unions would see just one blast furnace closed and replaced with a smaller electric arc furnace. The remaining blast furnace would have continued to operate until the end of its life cycle in 2032.
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The plan also recommended the construction of a Direct Iron Reduction (DRI) plant for the production of virgin steel in the electric furnace. Without such a plant, electric arc furnaces can only make steel from scrap metal, not from iron ore.
Union sources said their plan would mean the UK retained its strategically important capability to produce virgin steel - without having to source cheap scrap metal from overseas. They also said it would avoid immediate job losses, with any reduction in staffing being achieved through natural attrition.
Unions are locked in crisis talks over plans to shut furnaces in Port Talbot (Mirrorpix)
Community Assistant General Secretary Alasdair McDiarmid said: "We met Tata today and they responded formally to the Multi-Union Plan. We will communicate with our members before we make any public comments. We continue to believe the Multi-Union Plan is the best strategy for Tata Steel UK and can avoid compulsory redundancies, protect our steelmaking production capacity, and safeguard the future of Port Talbot and the downstream plants."
Stephen Kinnock, Labour MP for Aberavon, home of the Port Talbot steelworks, said: "Tata's decision to follow the Conservative business model of managed decline for British steelmaking will cause the job losses of 3,000 hard-working men and women, each of whom have dedicated their lives to an industry which underpins Britain's automotive industry, railways, defence sector, consumer goods, construction, wind turbines and so much more.
"Global demand for steel is actually growing, but by pursuing a narrow electric arc furnace-only model, Tata Steel will be unable to seize the commercial opportunities of the future, while at the same time leaving Britain more dependent on imported steel from countries whose governments won't always have Britain's best interests at heart."
Sources said Tata had accepted a union plea to keep the hot strip mill open over a transition period, supporting hundreds more jobs. A Tata Steel spokesman said: "We have recently announced a joint agreement between Tata Steel and UK Government for a proposal to invest in state-of-the art Electric Arc Furnace steelmaking in Port Talbot.
"We are committed to meaningful information sharing and consultation with our trade union partners about the plan to develop sustainable steelmaking in the UK and to find solutions for concerns they may have. While those discussions are ongoing it would not be appropriate to comment further."
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Welsh Liberal Democrat leader Jane Dodds said: "I am deeply disappointed to hear that Tata Steel will be closing their remaining blast furnaces in the UK, something which could have a devastating impact on communities across the country, particularly in Port Talbot, where the local economy is reliant on the nearby steel plant. The UK Conservative Government, through their inability to support investment into UK steel, has failed towns like Port Talbot across the country."
A spokeswoman for the Prime Minister said she could not comment on "speculation in relation to commercial matters. More broadly, our commitment to the steel sector is clear. We committed £500 million of the UK Government support that will transform the site and also protect thousands of jobs. We will continue to work closely with the industry and with Tata steel."
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