Unions hail deal to save 4,400 steel jobs in Scunthorpe

Trade unions have reacted with relief after a deal was agreed to save up to 4,400 jobs at the Tata Steel plant in Scunthorpe.

GMB said members deserved credit for two years of “pure determination” after multinational Tata sold the Long Products Europe business to investment firm Greybull Capital for a token sum of £1.

Staff at the plant will vote on whether to accept a one year pay cut of three per cent and changes to the pension scheme, according to Unite, which has recommended they accept the deal. The ballot closes on 19 April.

The deal is expected to lead to the revival of the British Steel name, which has not been seen since the end of the 1990s, when Corus took over the old company.

Today’s agreement does not include the Port Talbot plant in Wales, which Tata is still seeking to sell, following a period of heavy losses.

Martin Foster, Unite’s convenor for Tata in Scunthorpe, backed the deal but issued warning to the Government over its handling of the steel crisis.

“It should not be forgotten though that many workers have already lost their jobs at Scunthorpe and those that remain are making huge sacrifices with their pay and pensions to secure their jobs.

“Unite is asking our members to back the deal, but government ministers must now play their part too. The Government cannot now leave Scunthorpe’s steelworkers high and dry and must take decisive action to allow them to compete on an even playing field with their global competitors.

“This means supporting steelworkers by ensuring infrastructure such as HS2 and defence projects are built with British steel, as well as tackling the dumping of cheap imports and high energy costs, which is leaving steelworkers fighting with one hand tied behind their backs.”

Dave Hulse, GMB national officer, said the deal brought to an end a long period of uncertainty for staff in Scunthorpe.

“Our members must be congratulated for their pure determination in campaigning over the last 2 years. Their efforts were a major factor in the success of the sale.”