According to media estimates, at least one-third of the employees at Tata Steel’s mill in Wales, UK, may lose their jobs. The Indian steel manufacturer intends to permanently close two blast furnaces. This will result in the loss of 3,000 employment at the plant.
Because they produce a lot of pollutants, these blast furnaces are hazardous for the environment. The UK government has therefore been pressuring steel firms to consider more environmentally friendly options. According to AFP, the UK government gave steel producers funding of over $634 million last year to help them develop more environmentally friendly steel production methods. The funds, however, were unable to prevent the loss of 3000 employment. Originally, 8,000 jobs were predicted to be lost, but 5,000 jobs were saved when an electric furnace was installed.
For some time now, Tata Steel has been in talks with labour unions to find a solution that will guarantee sustainability over the long run and a future characterised by “green steel.”
The unions, however, allegedly insist that their recommendation for a better option—which was ostensibly more economical and would not have led to layoffs—was ignored.
Tata Steel is depending on the UK government to assist and support it in its efforts to decarbonise and cut emissions.
