Tata Steel job losses in focus as Keir Starmer-led UK govt takes over, union suspends strike

The United Kingdom's newly elected Labour Party government is prioritizing focus on the prevention of job losses at Tata Steel. The government is also extending its support for the company's transition to lower-carbon technologies

Written By Anubhav Mukherjee
First Published7 Jul 2024, 04:48 PM IST
The new UK government is supporting Tata Steel's transition to lower-carbon technologies.
The new UK government is supporting Tata Steel’s transition to lower-carbon technologies.(Chris Ratcliffe/Bloomberg)

The newly elected UK government indicated on Sunday that it was focused on preventing job losses at Tata Steel. The Keir Starmer-led administration is reportedly in talks with the company. Up to 2,800 people can lose their jobs in the coming months as Britain's biggest steel producer begins closing two of its carbon-intensive blast furnaces.

According to a Reuters report, the government is also extending its support for the company's transition to lower-carbon technologies.

“We see this as a major priority. I'm going to make sure that job guarantees are part of the negotiation that we're having,” the BBC quoted business minister Jonathan Reynolds as saying.

Also Read | IHCL: This Tata Group stock delivered 700% gain in 4 years

Update on the Tata Steel workers' strike:

The government focus comes after workers at the country's biggest steel maker suspended a strike they had planned following a warning from the company. Tata Steel had indicated that both of its furnaces would close in advance if the strike happened.

Close to 1,500 workers at the plant sites who had begun an overtime ban on June 17th, were also about to start a strike from July 8th, according to the report.

Also Read | Tata Motors vs Tata Steel: Which Tata Group stock should you prefer in long term

The union paused their actions after the company confirmed that it was entering into talks about the “future investment for its operations and not just redundancies.”

“Focus on the future investments and aspirations for the business, and not on a renegotiation of our existing plan for the heavy-end closure or the enhanced employment support terms,” the report quoted a spokesperson for Tata as saying.

Also Read | UK Elections 2024: Here is a list of British Indians who won

The newly elected Labour Party government is set to sign a 500 million pound ($635 million) support package which the prior Conservative government agreed to provide Tata Steel to build less carbon-intensive electric-arc furnaces.

Tata Steel began its plan to close one of its carbon-intensive blast furnaces on Thursday, with plans for another in September to prevent a mass walkout of workers. This could potentially lead to 2,800 job cuts in the South Wales Port Talbot Steel Plant.

Also Read | UK Elections 2024: Markets rally as Labour Party secures parliamentary majority

The steelmaker had previously said that its assets were close to the end of their work life making them operationally unstable causing losses of nearly a million pounds. Tata Steel employs around 8,000 people in Britain.

 

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.MoreLess
First Published:7 Jul 2024, 04:48 PM IST
HomeCompaniesNewsTata Steel job losses in focus as Keir Starmer-led UK govt takes over, union suspends strike

Most Active Stocks

Tata Steel

172.30
03:59 PM | 8 JUL 2024
-2.45 (-1.4%)

Oil & Natural Gas Corporation

299.25
03:59 PM | 8 JUL 2024
11.05 (3.83%)

Bharat Electronics

334.15
03:48 PM | 8 JUL 2024
10.15 (3.13%)

Indian Oil Corporation

170.15
03:59 PM | 8 JUL 2024
-1 (-0.58%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Fertilizers & Chemicals Travan

1,115.80
03:51 PM | 8 JUL 2024
98.65 (9.7%)

One 97 Communications

472.05
03:59 PM | 8 JUL 2024
35.45 (8.12%)

Indian Railway Finance Corporation

202.10
03:58 PM | 8 JUL 2024
13.8 (7.33%)

IRCON International

326.90
03:56 PM | 8 JUL 2024
19.15 (6.22%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,093.0073.00
    Chennai
    74,819.000.00
    Delhi
    74,819.00290.00
    Kolkata
    74,674.00-145.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L-0.17
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsCibilPremiumMint Shorts