Posted: Tue 21st Jun 2016

Steel Union blasts Tata over sale delays

News and Info from Deeside, Flintshire, North Wales
This article is old - Published: Tuesday, Jun 21st, 2016

Steelworkers’ union, Community has said it has serious concerns about the integrity of Tata Steel’s sales process.

Daily ‘insider’ reports which have been plotting the latest twists from the company’s sales team camp are now pointing towards a possible break up of the UK estate.

It’s almost three months since workers in Shotton and around the UK were told Tata intended to sell it’s UK assets

Reports have been swirling around various media outlets over the last 48 hour suggesting Tata now will abandon a previous promise to keep the whole of its UK business as a single operation.

The company is now considering bids for parts of the business, something it initially rejected further to the confusion.

It’s reported Tata’s Indian parent company was also said to be considering accepting government support and scrapping the sale altogether.

Sky News reported “documents relating to the sale of Tata’s speciality steels division and its pipeline tube operations… will be issued to potential bidders in the coming days”.

The sales would involve breaking up Tata’s UK operations, which several analysts believe will yield a greater overall value as separate businesses.

Speciality steels and pipeline tube operations have been chosen because “they are separable from the main Tata Steel supply chain”.

Union Meeting.
Community union members from every Tata Steel UK site met in London today to consider issues relating to the ongoing sales process.

Over 60 steelworker union representatives gathered at the TUC’s Congress House to hear from Community’s General Secretary, Roy Rickhuss and to agree the union’s position on a number of issues.

Community Said:

“Community, the steelworkers’ union, has serious concerns about the integrity of Tata Steel’s sales process. Almost three months have passed since the announcement that Tata intended to sell their UK assets, yet if anything steelworkers and their families are now less certain of their future than ever. Employees, customers and suppliers all deserve to know Tata’s intentions. Without all of those groups the steel industry cannot hope to have a successful future.

“Tata made it clear they no longer wanted to keep their UK businesses. The UK Government stressed the need for Tata to act as a responsible seller; however it is now unclear whether Tata intend to sell the business at all. Since that first announcement, the trust and good will of Tata’s loyal workforce has been pushed to the limit. If Tata do indeed intend to retain the business, then they need not only to make this clear to their loyal workforce, but also lay out their long term plan for investment in steelmaking. Were Tata to remain, they would have a long way to go in regaining the confidence of steelworkers. Amidst this uncertainly, there also remains the hugely important issue of the pension scheme to be resolved.

“It is simply unacceptable that our members are expected to learn more about this process from the media than their own employer. Today workers are reading in the media that Tata are now willing to accept bids for separate parts of the business, despite previously committing to selling the whole business as a going concern. Further to this, some media reports have suggested that Tata does not consider any of the bids that have been submitted to be credible. However the independent steel experts, Syndex, have examined the bids and found a number to be potentially financially robust and credible for the long-term. We believe the next stage of the process should be for bidders to submit to Tata their full and detailed plans for the business. If Tata are continuing with the sales process it is vital they provide bidders with the information and support they need to develop the best possible proposals to safeguard our industry.

“The British steel industry is bigger than any one company or government, and as the guardians of the industry we call on Tata to recognise their moral and social responsibilities. Community will continue our ‘Save Our Steel’ campaign, meanwhile Tata and the UK Government must get their act together to end this insufferable period of uncertainty and ensure a future for UK steelmaking.”

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