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Tata Steel cuts 500 jobs in Scunthorpe, Workington and Teesside Tata Steel cuts 500 jobs in Scunthorpe, Workington and Teesside
(about 7 hours later)
Nearly 500 jobs are due to be cut by Tata Steel at its plants in Scunthorpe, Workington and Teesside, the company has confirmed. Nearly 500 jobs are to be cut by Tata Steel at its plants in Scunthorpe, Workington and Teesside, the company has confirmed.
The planned cuts have been blamed on prolonged weak demand in the construction industry.The planned cuts have been blamed on prolonged weak demand in the construction industry.
About 340 jobs could be affected in Scunthorpe, 90 in Workington and 40 in Teesside.About 340 jobs could be affected in Scunthorpe, 90 in Workington and 40 in Teesside.
The company said the cuts would mainly affect management and administrative roles.The company said the cuts would mainly affect management and administrative roles.
'Fragile economy' 'Shocking blow'
Chief executive of Tata Steel's European operations, Karl Koehler said: "European steel demand this year is expected to be only two-thirds of pre-crisis levels after falls in the past two years. A Tata director, Jon Bolton, said the company had been forced to remove "support costs" from the business due to the drop in demand for steel.
"On top of the challenging economic conditions, rules covering energy and the environment in Europe and the UK threaten to impose huge additional costs on the steel industry." He said: "If you take just the construction sector, which is the market we supply mostly, that's reduced by 50% since the peak in 2007.
He said they would work with staff and unions during the restructuring to support employees. "We see that level not recovering for at least another 10 years."
General Secretary of the Community Union Michael Leahy said: "We recognise the business has been dealing with a downturn in some of its markets for the past five years. Mr Bolton said the company would work with staff and unions during the restructuring to support employees.
"Nevertheless, this news once again reflects the fragile state of our economy and the lack of any real impetus by government to support our manufacturing base. Sean Scorer from the Community Union said the announcement was a "shocking blow to Scunthorpe and the people who work here and the associated steel community".
"Community is seeking an urgent meeting with the company to get their agreement to extending the consultation period to allow for all alternatives to be explored and also to reiterate Community's opposition to any compulsory redundancy." Mr Scorer said the union would oppose compulsory redundancies, but would work with the management on the restructuring as long as it led to a long-term future for the business.
He called on all political parties to commit to more infrastructure spending to provide a future for steel making in the UK.
He said: "If you want to have an industrial heartland and industrial future for the UK then you need to start investing in this industry."