Express & Star

Steel union responds to Tata sales plan

Steelworkers trade union Community says it is ‘yet to be persuaded’ of the case for sale of several Tata Steel businesses including two in Wolverhampton and Walsall.

Published
Roy Rickhuss on a visit to Tata Steel's main site in Wednesfield last year

Tata Steel announced its intention to sell five business units, four of which have production assets in the UK, on Tuesday,

Responding to the announcement, Roy Rickhuss, General Secretary of Community and chairman of the National Trade Union Steel Co-ordinating Committee, said: “Clearly this will bring yet another period of uncertainty to hundreds of steelworkers across the UK and will be worrying news for many of them and their families.

"We are yet to be persuaded of the business cases for these proposed sales and we are calling on Tata to demonstrate that it is a responsible seller in practical terms by allowing time for the unions and our experts to look at the rationale behind today’s announcement. No sale agreements should be signed before full consultation has taken place.

“During our discussions with Tata about the merger with Thyssenkrupp, we secured a commitment that there would be no asset closures and this principle must be upheld throughout this process and any sale. Potential purchasers need to have the best interests of these businesses at heart, honour the jobs pact we have secured and be prepared to invest. The skilled and experienced workforces within these businesses have delivered for their owners time and again – they deserve a sustainable future.”

The businesses proposed for sale include Firsteel in Walsall, which coats steel for kitchen bakeware and employs 50 and Engineering Steels in Wolverhampton which is a stockholder and processes engineering steels employing 20.

Emma Reynolds, Labour MP for Wolverhampton North East, called on Tata Steel to pause its proposals to sell its Engineering Steels business in Heath Town. The business employs 21 people. This is a separate subdivision of Tata Steel to the Steelpark in Wednesfield which is not being sold.

She said: “I am concerned about the uncertainty this proposed sale will create for the employees of Tata Steel’s Engineering Steels business in Heath Town. I support the trade union Community’s request that Tata gives time for the unions and outside experts to examine the business case behind today’s announcement.

“I will therefore be making representations to Tata to ask them not to sell the business before a full consultation has taken place.”

“If the sale does eventually go ahead, any potential buyer needs to have the best interests of the business in Wolverhampton at heart. Tata should only sell to a buyer which is prepared to guarantee to protect jobs and invest for the future.”