This information is little off topic however, just wanted to share my understanding and things that is happening with TATA Steel.
After Tata Steel UK initiated legal action against an employee’s union after their announcement on early shutdown of its operations at the Port Talbot facility. This all started when Tata steel planned to shut down its loss-making business by decommissioning two blast furnaces and replace it with Electric Arc furnace project. The Company had also sought support from the UK Government and came to an agreement to invest £500 million.
Now what’s the issue?
Around 2800 jobs will be lost in closure of the blast furnaces. Also, the long-term Steel making sustainability would come to a pause.
Hence, Employee union’s secretary Sharon Graham stated that “We call on the real decision makers in Mumbai to take hold of this dispute, sit down, negotiate, and realise that the investment secured will be good for the company and workers.”
What the Company is doing?
The Company has urged the Union to withdraw its strike that is going to start from July 8, 2024 and consider its proposal which includes “generous” employee support packages, training, and skills development.
In the coming days, if the Company is unable to continue to safely and stably operate the assets through the period of strike action, they will have to pause or stop heavy-end operations (including both blast furnaces) on the Port Talbot site.
The Company has emphasized that shutting down operations would be extremely costly and disruptive throughout the supply chain.
They also stated that safety of people on the site will be their priority.
To Conclude, Tata Steel being one of the largest steel manufacturing Company around the globe, these disruptions would not hamper the long-term goals of the Company. However, if the operations are being paused or stopped for a longer duration it would badly affect the company’s topline growth in the near term.
Do share your thoughts on above information.
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