Friday’s news at Tata Steel’s Scunthorpe site came as a shock to no one. Speculation has been rife for many months as to when, where and how hard the axe would fall on the Tata Scunthorpe site, despite all the hard work and commitment shown by workers there to make the site as profitable as possible for its Indian owners.

Estimates of job losses at the Scunthorpe site have stemmed from 600 to over 1,000. On Friday the town’s fears were confirmed with Tata steel announcing 1,200 jobs to go at the Scunthorpe site with a further 300 jobs going at Teeside.

Steel worker’s across the town woke on Saturday morning to find a letter on their door step from Tata boss Jon Bolton (director of long products) apologising for the fact that many staff had found out about the job losses through the media.

In his letter Mr Bolton cites difficult market conditions, increased raw materials costs and a drop in demand for some products. Interestingly enough the letter does not mention any impact which the current conflict in Lybia may be having the knock on effect this would be having on the rail contract Scunthorpe won last year.

Mr Bolton goes on to say that there will be briefings for staff, and that consultation will be entered in to between affected staff and the relevant trade unions. Jon concludes by saying that Tata will provide as much assistance and support as possible for staff.

At the same time, a CEO Bulleting was issued by Tata, titled “Tata Steel Announces Turnaround Plan for the Long Products Business”. This statement contains what would be expected in any business plan where worker’s are about to shoulder the pain for a large company desperate to make bigger profits.

The CEO’s statement begins by explaining that Tata are focusing on “High value markets” and want to introduce “Greater flexibility into its costs and operations” – Which is in effect management speak for sacking hardworking, faithful workers. The Statement then goes on to say that Tata intent to invest £400Million over a 5 year period, but, sadly this will require them to make a number of job reductions.

Blaming a downturn in demand for long products (assumed to be mainly due to a reduction in public spending on building projects – such as schools), combined with the government’s proposed Carbon Tax. (Suggesting that for the likes of Tata, production and polution in India is a lot cheaper than in the UK)

Karl Kohler’s statement states that “difficult decisions will invoice”

• Closure of Bloom and Billet Mill
• Closure of Steel Caster (Bloom 750) Mill
• Mothballing on Queen Bess Blast Furnace
• Approximately 1,200 job losses

Workers on the site have told VisitScunthorpe.Com that the plates business has been one of the strongest markets over the downturn and is rolling around 12,000 tons per week (near to the pre-recession high) and the increased plate prices are holding out. For the year to 1st April the Plate Mill as a stand alone department of the Long Products Division of Tata made an operating loss of only around £35k and was indeed for the last two quarters making profits each month of between £2-4 million.
 
Visit Scunthorpe have also been told by other sources working on the plant that the 750 bloom caster produces around 11,000 tons per week, and that the blast furnace identified for being mothballed is the one which has reportedly been most recently refurbished.

As reduction in spending on construction is taking hold, jobs in Birtish Industry are starting to feel the knock on effects. It is totally incomprehensible that the government should expect British Industry to fill the jobs gap as thousands of Council Employees face redundancy.

This is compounded not only by a lack of investment in industry over recent decades, but also the government’s removal of funding for construction projects around the UK. This approach goes to prove that the government’s policy of cost cutting is not only short sighted and ideological, but inflicts a double blow on workers in Scunthorpe.