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Tata Sell Off


Tata Steel announced plans to sell off it’s Long Products Europe division which includes the Dalzell plate mill in Motherwell and Clydebridge at Cambuslang.

This is a major blow to those working at Dalzell and Clydebridge Steelworks and the other affected sites through the UK.

Motherwell & Wishaw MP Frank Roy

Chief executive of Tata Steel’s European operations, Karl Koehler, said: “We will now move into detailed due diligence and negotiations, though no assurance can be given about the outcome.

“We will regularly engage with our employees and other stakeholders throughout this process, and we will consult with the trade union representatives and works councils.

Apparently trade unions were left in the dark that Tata was looking to sell the division.

Roy Rickhuss, general secretary of Community and chairman of the trade union steel committee said: “We’re extremely disappointed with the way that Tata Steel have handled this announcement, which does not reflect well on Tata’s values.

“However, I am pleased they have now agreed to meet the unions and I hope this can take place soon so that we can start to address the understandable worries and concerns of our members, their families and communities.”

Motherwell and Wishaw MP Frank Roy used Scottish Questions to call on the UK and Scottish Governments to intervene with Tata Steel’s plans to sell it’s steelworks.

Frank said: This is a major blow to those working at Dalzell and Clydebridge Steelworks and the other affected sites through the UK.

“I have profound concerns about what this course of action will mean for the future of the UK Steel Industry, the company, both Long and Strip Products divisions and for the lives of the workforce, their families and our communities.

“During Scottish Questions in the House of Commons I called on both the Scottish and UK Governments to work together and intervene for the sake of the workers and for the sake of future construction and manufacturing industry in the UK.

“Over the next few weeks I and my local colleagues will be meeting with the Prime Minister, local and national workforce and management and the Trade Unions.”

The proposed divestment will directly impact around 6,500 employees and at least the same number of contractors and agency staff.

Frank added: “I am also deeply concerned and disappointed that despite a previously good working relationship, Tata Steel chose to exclude the Trade Unions from this decision.

“To exclude Community Union and The GMB from this decision is a real kick in the teeth for the workers and makes a mockery of Tata’s treasured values and Code of Conduct.”

Motherwell and Wishaw MSP John Pentland also condemned Tata for the way in which their decision was made without prior consultation with staff.

Updated 24/10/14

Prime Minister David Cameron says he will look into the potential sale of Tata Steel’s Long Products European division, but stopped short of saying he would take action.

During Prime Ministers Questions yesterday Motherwell and Wishaw MP Frank Roy called on the Government and the Prime Minster to intervene.

He said: “The Prime Minister will be aware that Tata Steel intends to sell its long products division to the Klesch group, which could have an effect on 15,000 jobs.

“Given the significance of the British steel industry to the UK economy and in view of Klesch’s history of asset stripping and dumping companies across Europe, does the Prime Minister agree with me that Klesch is not a fit and proper company to own such an important part of our economy and that the prospect of such a sale merits a direct intervention by this Government in the interests of those steelworkers and the British public?”

Mr Cameron responded: “I want to see a successful British steel industry as much as the honourable gentleman does.

“We have seen some good steps in recent years, with what has happened at Port Talbot and, indeed, at Redcar.

“I think we should talk to Klesch, judge it by what it says and what it does and give every assistance we can to try to maintain these important businesses and jobs.

“That is exactly what we are doing. We are looking at all the flexibilities under things such as the emissions directives to see what more we can do.

“I am sure that the Department for Business, Innovation and Skills and I will be looking into this personally, and will do everything we can to support this important industry.”

Frank gave a tentative welcome to what the Prime Minster had to say, but wants more than words.

He said: “While I am pleased the Prime Minister is taking an interest, I would urge him to follow up his words with action and intervene on this sale in the interests of the steelworkers and their local communities”