These are uncertain times for our steelworkers. They need government on their side
4 min read
Let’s be clear. After long years of neglect and failure under the Tories, we do now have a Labour government which recognises the importance of our steel sector.
We saw that with the historic intervention at British Steel last year, through the decisive action taken to save SSUK from liquidation, and with the publication of the long-awaited steel strategy earlier this year.
Andy Burnham has indicated that steel will be a priority for his government too. Just last week he spoke in Parliament about the importance of protecting the steel industry in South Wales, and insisted that steel will be at the top of the agenda in upcoming trade talks with the European Union.
We welcome this signal of intent, but steelworkers know that words mean little if they are not backed up with meaningful action.
Community is a Labour-affiliated union and proud of it. But that doesn’t mean we will shy away from challenging any government – including this Labour government – to ensure that we get the best possible outcomes for our members.
And let’s make no bones about it, many of our members across the steel industry are hurting and feel frustrated. Sites that are critical national assets – and which ultimately sit at the heart of the government’s steel strategy – are facing huge uncertainty.
Workers at SSUK’s plants in South Yorkshire – where green steel technologies produce high-quality products for aerospace, power generation and industrial engineering – want clarity about what the future holds. If the preferred bidder for SSUK is unable to step up, then the government must be prepared to nationalise these strategically important businesses.
There’s similar uncertainty at Liberty’s Dalzell site, where chronic problems with supply over recent years have often left the workforce unable to get on with their job of producing the best steel plate on the market. Dalzell has a long history of supporting the defence industry, and with the right modernisation can power the burgeoning offshore wind industry for years to come. The government cannot sit by and let the country’s only remaining plate mill struggle – or tolerate foreign steel plate being used in defence contracts.
Tata’s Llanwern works produces some of the highest-quality galvanised steel money can buy, and is a key part of the supply chain for the UK’s automotive sector. At present, the increase in duty-free steel imports from Asia is posing a real threat to the plant, and the government must adopt a more robust approach to ensure that the sustainability of this historic works is not jeopardised. The current situation – with nearby Newport docks piled high with cheap galvanised steel imports from Vietnam – is completely unacceptable.
At Tata Steel, it is imperative that we see Port Talbot grow and develop beyond the construction of the new Electric Arc Furnace (EAF). Government has a vital role to play in ensuring that Tata fulfils its promises for investment at Port Talbot and at downstream sites including Llanwern, Trostre, Corby, Shotton, Wolverhampton and Hartlepool.
At Port Talbot, with delays to the grid connection delaying the EAF going live, government must work with the unions to hold Tata to their commitments to maintain employment levels across the business. Our members have been through more than enough pain and turmoil, and they will not pay the price for failures to meet the agreed timeline for the EAF.
And at British Steel, nationalisation – which we fully supported – is not a panacea. We need to see a long-term plan in place for the future of the business, which will be absolutely central to the government’s plans to invest in British rail and for major infrastructure projects like a new runway at Heathrow.
The government also need to deliver on some of the longstanding issues which have plagued the entire UK steel sector. This must include further action on procurement and trade, and addressing the burden of eyewatering industrial energy costs, which continue to place our steelmakers at a huge competitive disadvantage against the French and Germans.
We need robust climate measures to protect us from dirty steel imports, and meaningful incentives to ensure that steel from these shores is used for defence, energy and infrastructure projects. And we need a firm commitment from the government that it is committed to maintaining primary steelmaking capacity in the UK for the long-term, with all technological options remaining on the table.
This isn’t just about policy, it’s about people and the communities our steel sector supports. It’s also about the kind of nation we want to be.
With the right support from government, there is no reason why steel sites across the UK should not have a bright future – demand for steel is rising, and will continue to rise as we move towards a greener economy.
Letting our steel industry wither on the vine would not just be uneconomical and unthinkable – it would be unforgivable.
Alasdair McDiarmid is Community Assistant General Secretary
