More than 3,000 jobs are at risk despite a deal, backed by the government, preserving the future of the country’s biggest steelworks.
Tata Steel in September confirmed details reported by Sky News that it had secured taxpayer cash to support the Port Talbot plant in South Wales transition to cheaper, greener steel production.
Job losses had been expected as part of the deal.
The redundancies, to be completed by March next year, will see three-quarters of the 4,000 staff on site at risk of losing their jobs, PA has said
The workforce currently accounts for 12% of the coastal town’s entire population and many had expressed concerns for their families’ futures when it emerged that big job losses were expected.
The Treasury aid package, worth £500m, will be handed over to support sacked staff and the decarbonisation effort in return for an investment commitment from Tata of around £700m.
India-based Tata will replace the two blast furnaces at the plant with electric arc furnaces under the plan to reduce emissions and costs.
The viability of domestic steel production has been hampered over many years by high UK energy prices, which have damaged competitiveness.
To that end, the GMB union has claimed that up to 2,000 jobs at British Steel’s Scunthorpe plant are also under imminent threat.
The Chinese-owned company cut 7% of its workforce in February.
That was despite continuing government talks with Jingye Group about potential taxpayer aid at the time.
Tata can expect to face a battle as the consultation over its plans for Port Talbot go out to consultation.
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Sept: Govt defends £500m aid
Speaking before the announcement Roy Rickhuss, the general secretary of the Community union, said he was “determined to maintain steelmaking in Port Talbot”
“If Tata is not prepared to listen then we could be heading towards a very significant industrial dispute,” he added.
“Whilst the unions are braced for bad news, we are prepared to fight.”