Tata Steel is threatening the closure of furnaces, and with them, sweeping job cuts of up to 3,000 in Port Talbot. As we have previously reported, such a move, if it is allowed to go ahead, will have a devastating effect on the town, the industry, and the future of both.
Now, news has come out that gives a glimpse into the backroom negotiations between the bosses and the unions.
Unfortunately for ordinary steel workers whose jobs are on the line, they reveal serious disagreements between the different unions on the way forward.
Managed decline
Firstly, the proposal put forward by Community, the main union in the steel industry, along with GMB, are far from adequate to say the least. They seem set on a plan of, essentially, managed decline.
This was thought up by the consultancy firm Syndex. It means accepting the closure of both furnaces but with the smaller furnace being kept running until 2032 while the new electric arc furnace is constructed. This would protect some (but not all) jobs, and only for the next eight years!
Unite originally backed this plan. But under pressure from its members, the union has correctly rejected this weaker Syndex proposal. Instead, it is now calling for furnaces and jobs to be protected wholesale as part of its broader ‘Workers Plan for Steel’.
This ‘Workers Plan’ calls for £12 billion investment in steel by 2035. It includes expanding production by double to meet the economy’s needs and secure every job, among other demands to “save the industry”.
GMB and Community have since hit out at Unite’s plan as “reckless” and “unrealistic”. But Unite has, in turn, responded boldly to these claims.
“We are a trade union and will make no apology for acting like one” the union has said in a recent statement. “Whilst many seem to be… supporting managed decline, Unite has a real plan for the growth of the steel industry.”
Fight back
Unite are right to hit back. The position of Community and GMB is shameful to say the least. Livelihoods are at stake. A weak compromise such as that in the Syndex proposal is itself ‘reckless’: tantamount to selling out their members’ future.
It is also not ‘unrealistic’ to say that a bold defence can be put up. These industrial workers are not powerless. There are 4,000 steel workers at the plant. If given a lead they could grind production to a standstill.
But a lead is not forthcoming from Community or GMB. One of our comrades spoke to a worker at the plant who is organised in Community. They told us they feel “ignored” by the union. There is no doubt this mood is more widespread, given the union’s inaction.
‘Realistic’
Trade unions should never simply start with what the bosses or their advisors say is ‘realistic’ but should instead start from what is necessary. In this case, that means defending jobs and securing the future of the plant.
From this standpoint, the position being taken by Unite is commendable. But the question does remain: is Unite’s plan actually realisable?
£12 billion may be a hefty sum, but HS2 cost much more before being scrapped. And such investment is essential to keep the UK steel industry afloat. Downgrading industry and importing steel makes no economic or environmental sense in the long term.
However, to expect Tata to accept workers’ demands without a fierce struggle is naive – as is expecting this anti-worker Tory government of bankers to trump up the necessary money to save the steel industry.
This, after all, is a government that has helped oversee the decline of the sector! Both the Tories and the bosses will always put profits first, and workers second. Unite has to acknowledge this and act accordingly.
Militant campaign
Unite’s is doing more than Community and GMB. But considering the scale of the ‘Workers Plan for Steel’, we’ve still only seen a small mobilisation on the ground.
So far the campaign has centred around a petition from local shops and sports clubs that simply asks politely for a fairer deal. Unite has also paid for murals, held a banner drop, and a single rally.
But with jobs potentially going in March there’s a real lack of urgency. During a public stall we met a steel worker who had recently left Unite due to its “diabolical campaign” (though this was before Unite came out against the Syndex plan) but was still keen to strike and is up for “a proper fight”.
Of the 4,000 steel workers in Port Talbot over a third are in Unite. They need to be mobilised in a militant campaign. This should include holding regular rallies and immediately launching strike ballots to show the bosses they mean business.
Such a campaign has to be based on the rank and file, involving them at every step to ensure they are not kept in the dark.
Nationalisation
Unite should also raise the question: why should Tata’s word that cuts are needed be trusted?
If Tata can’t manage the industry in the interests of workers, then surely they do not deserve to run or own the steel works. After all, why should a huge multinational firm like Tata profit while ordinary workers suffer?
Indeed, this is a key drawback of Unite’s ‘Workers Plan’ – it does not call for the immediate nationalisation of Britain’s steel industry, including Port Talbot. This should be added to the plan, and with two important caveats.
First, nationalisation should be without compensation, given the mismanagement and managed decline the bosses have overseen. They cannot be trusted. And second, the industry should be placed under workers’ control.
In the long term, the steel industry needs to form part of a planned, socialist economy. Although such a vision cannot be achieved without a big struggle, it is what’s required both for workers and the planet. That is why we, the communists, say:
No to concessions to Tata!
For a militant campaign to overturn Tata’s plan!
For workers control and planning of Steel
