Exclusive: Labour joins forces with trade unions for plans to boost steel sector

Labour has joined forces with steel unions for plans to buy, make, sell more in Britain in a bid to boost the steel sector in Britain that has been “so sorely left behind” by the current Conservative government.

According to the party-affiliated Community trade union, which represents thousands of steelworkers in the UK, steel consumption fell by 16% in 2020 but the industry can still provide an engine for growth for the country.

For every 1,000 tonnes of steel produced each year, ten jobs are created or protected. This translated to 32,600 high-skilled, high-paying jobs in places like Wales, Yorkshire and Humberside, and 41,000 more in the supply chain last year.

“Steel is one of the prides of British industry and drives forward so many different types of businesses – including offshore wind and defence technology important for our national security. Yet this government seems determined to hold it back,” Rachel Reeves said.

Labour has outlined a plan to buy, make and sell more in Britain, under which the party in government would use stretch social and environmental clauses in contracts to help British businesses win more of them.

The opposition party says this could help British steel makers and suppliers in particular gain more weighting through contracts when public sector spending is being used for procuring steel.

It might have meant more British steel being used for contracts in recent years, such as those for building wind turbines on the east coast of Scotland that went instead to China and other countries.

Labour has highlighted that company BiFab lost out on such contracts despite its commitment to use steel plate rolled at Dalzell from steel made in Scunthorpe, which would have supported thousands of jobs across the UK.

The Shadow Chancellor added: “Instead of handing public money to companies overseas to make and manufacture steel products, Labour’s plan to buy, make and sell more in Britain means that we can use more British steel, create more quality jobs here and boost our businesses.

“As we look towards our recovery, we should be getting industries firing on all cylinders so we have the jobs we need for a more secure and resilient economy.”

The party has pointed out that less than 30% of the steel procured for the Royal Navy’s new Type 26 frigates over the past year came from UK suppliers, while hospitals and schools used steel that could have been procured in the UK but came from elsewhere.

Roy Rickhuss, general secretary of Community Union, said: “A commitment to buying British steel is an investment in Britain. Contracts should not be awarded solely on the basis of cost, but must properly take into account the social and environmental benefits of sourcing locally. Buying Britain’s steel supports thousands of jobs and livelihoods, benefits our economy, provides value to the taxpayer and is better for the environment.

“Steel is not an industry of the past, but one of the future. Britain needs a strong and sustainable steel industry. Not only do thousands of families and their communities rely upon the steel industry for their jobs and livelihoods but it is a foundation industry, crucial to other sectors such as transport, defence and aerospace. As we seek to rebuild our economy from the pandemic, it is vital that our steel industry is at the heart of any industrial strategy going forwards.”

GMB national officer Ross Murdoch said: “If the government is serious about rebuilding and ‘levelling up’ the UK, they need to ensure decent well paid UK jobs are secured here and steel as a foundation industry should play a major role in that.”

“We urgently need more action from Government to support a manufacturing comeback but inaction and procrastination from Ministers has meant the steel industry is now being hit by rising energy prices as well as the ongoing failures to ensure steel made in the UK is used in locally.

“Nowhere more absurd has this spectacle been than listening to the Prime Minister give fairy-tale promises of green jobs revolutions when 84 wind turbine jackets made in China are shipped across the world on a diesel guzzling shipping tanker to the North Sea only a few miles away from our own fabrication yards in Fife that could and should have made them using steel made in the UK with struggling firms like Liberty Steel. It is an intolerable hypocrisy.”

Unite national officer for Tata Steel, Tony Brady, said: “Our steel industry supports many local communities and the short-term thinking and neglect of this foundation industry by the Conservatives has led to constant uncertainty for this skilled workforce.

“A joined up industrial strategy that invests in and uses our steel for the upgrade of our country’s infrastructure over the longer term will not only put the steel industry on a surer footing but provide quality jobs through the supply chain and give a vital boost to local communities.”