"Devastating" impact of Rotherham steel job cuts

UNION officials have described as “devastating” the news that almost 500 steel jobs are being axed in Rotherham.

Around 490 redundancies will be made at Tata’s speciality steels and bar business at Aldwarke, after the company confirmed a rescue bid proposed by trade unions to prevent 720 jobs going had failed.

Senior management were understood to be meeting union officials today to confirm the cuts.

A spokesman for the Community Union said the cuts would have a “huge impact” not only on the steelworks but also on the town as a whole, with up to 1,500 jobs in the supply line dependent on the business, a large proportion of them in Rotherham.

The union said it was concerned that the vast majority of the redundancies would be compulsory, which it described as “unacceptable”.

Community hired consultants Syndex in the summer to look at alternatives to the job losses but European chief executive Karl Kohler confirmed in a letter to Wentworth and Dearne MP John Healey that the suggestions would be rejected.

Two weeks ago, Mr Healey called Rotherham “the forgotten town of the steel crisis” and called for business minister Anna Soubry to intervene.

He added today: “With hundreds of forced redundancies ahead, steel workers are facing a bleak Christmas and new year. They need all the help we can get.

“I have asked for an urgent meeting with the industry minister Anna Soubry next week.

“It’s several weeks after the steel summit, when she came to Rotherham and pledged to help – but there’s still no money on the table.”

Tata said its bar business has been underperforming in the face of commodity-grade steel being unfairly traded in the UK, the strong pound and high energy costs.

“This led to a decision, after examining all the options, of refocussing on higher-value markets which can help the company reduce its losses and turn the corner to profitability in the future,” a spokesman said.

“While Tata Steel is thankful of the work done by the trade unions via their consultants, Syndex, none of the recommendations would have given us the solid base required to ensure we can continue to employ around 1,500 people in South Yorkshire.”