Tata Steel job losses ‘will devastate Rotherham’

Tata Steel’s announcement today that it is planning to cut 720 jobs, mainly at its plant in Rotherham, was met with outrage from union leaders as the region’s MPs also voiced concerns over the “devastating impact” the redundancies would have on the South Yorkshire town.

MPs reacted with shock at the scale of job losses, voicing fears that the steel industry in Rotherham was under threat.

John Healey, the Labour MP for Wentworth and Dearne, said: “It’s simply devastating for the workers and their families, many of whom waived pay, holidays and other entitlements to help keep Tata going through the global economic crisis from 2008. They kept faith in Tata and now feel massively let down.

“I fear cuts to steel-making on this scale would leave our Rotherham site with no long-term future.”

Sarah Champion, the Labour MP for Rotherham, said she was “deeply shocked and disappointed” while the Labour MP for Rother Valley, Kevin Barron, described the news as “devastating”.

Tata Steel admitted yesterday that the business had been underperforming in the face of steel imports due to the strong pound and higher electricity costs which it said were double those of European competitors.

The firm confirmed it had “identified 720 positions which will potentially become redundant” but will work with unions and employees to redeploy workers and minimise the number of compulsory redundancies.

The chief executive of Tata Steel’s European operations, Karl Koehler, said: “I realise how distressing this news will be for all those affected, but I am also extremely aware of our responsibility towards the ongoing survival of this business, which will continue to employ about 1,500 people in South Yorkshire.”

Leaders from the Community trade union claimed the announcement will be “devastating news for our members”.

General Secretary Roy Rickhuss, said: “While we still need to study the full rationale behind today’s announcement, it is clear the UK steel industry is in a perilous state and as the biggest producer, Tata Steel is particularly affected. There is already a case for government action.

“We have been saying for years that uncompetitive UK energy costs are damaging the UK steel industry.”

Rotherham Council’s leader, Coun Chris Read, admitted the announcement was a huge blow to workers and their families as well as the town itself, adding: “This is not just about losing 720 jobs, it’s about the impact on 720 families and 720 wage packets no longer going into the local economy.”

Prime Minister David Cameron’s official spokeswoman was adamant that the Government is committed to “doing all we can to keeping energy prices down for consumers and businesses”.