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Tata Steel to cut 1,500 UK jobs | Tata Steel to cut 1,500 UK jobs |
(40 minutes later) | |
Tata Steel is set to cut 1,500 jobs at sites in the North of England. | Tata Steel is set to cut 1,500 jobs at sites in the North of England. |
The Indian steel giant has proposed cutting 1,200 jobs in Scunthorpe and 300 in Teesside at its Long Products division, which is loss-making due to falling demand for steel, Tata said. | The Indian steel giant has proposed cutting 1,200 jobs in Scunthorpe and 300 in Teesside at its Long Products division, which is loss-making due to falling demand for steel, Tata said. |
The firm also said it would invest £400m in the division over the next five years to help turn it around. | The firm also said it would invest £400m in the division over the next five years to help turn it around. |
Tata is one of the biggest steel makers in the world, with operations in 26 countries. | Tata is one of the biggest steel makers in the world, with operations in 26 countries. |
In 2010, the company, which employs more than 80,000 people worldwide, recorded a turnover of $22.8bn (£14bn). | In 2010, the company, which employs more than 80,000 people worldwide, recorded a turnover of $22.8bn (£14bn). |
'Careful scrutiny' | 'Careful scrutiny' |
The firm said demand for structural steel in the UK was only two-thirds of the level seen in 2007 and "is not expected to fully recover within the next five years". | The firm said demand for structural steel in the UK was only two-thirds of the level seen in 2007 and "is not expected to fully recover within the next five years". |
As a result it proposed closing or mothballing parts of the Scunthorpe plant. | As a result it proposed closing or mothballing parts of the Scunthorpe plant. |
"We are proposing to take these actions only after going through an inclusive consultative process that involved very careful scrutiny of the Long Products business performance," said Karl-Ulrich Kohler, chief executive of Tata Steel's European operations. | "We are proposing to take these actions only after going through an inclusive consultative process that involved very careful scrutiny of the Long Products business performance," said Karl-Ulrich Kohler, chief executive of Tata Steel's European operations. |
He said the company would do "everything we can to provide [employees] with support and assistance". | He said the company would do "everything we can to provide [employees] with support and assistance". |
Unions said the job losses would have a real impact on local communities. | |
"This is a real blow for the region," said Unite's national officer Paul Reuter. | |
"We have already demanded that there should be no compulsory redundancies and we believe that this should be possible to achieve." | |
George Dunning, leader of Redcar & Cleveland Borough Council, also said the job losses on Teesside would represent a "bitter blow" for the local economy. | |
However, he said the council, along with Jobcentre Plus, would do all they could to support those affected. | However, he said the council, along with Jobcentre Plus, would do all they could to support those affected. |
"We have a strong track record of responding swiftly to precisely this kind of situation," he said. | "We have a strong track record of responding swiftly to precisely this kind of situation," he said. |
Tata has recently announced a number of investments in its Scottish and Welsh plants, including an £8m investment at its Clydebridge plant near Glasgow and a £53m investment at its Port Talbot plant. | Tata has recently announced a number of investments in its Scottish and Welsh plants, including an £8m investment at its Clydebridge plant near Glasgow and a £53m investment at its Port Talbot plant. |
Do you work for Tata Steel? Will you be affected by the job cuts? You can send us your experiences using the form below. | Do you work for Tata Steel? Will you be affected by the job cuts? You can send us your experiences using the form below. |