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Opinion

Labour put political posturing ahead of our steel workers’ livelihoods

18 Sep 2024 5 minute read
Port Talbot steelworks. Photo Ben Birchall/PA Wire

Lord Byron Davies of GowerShadow Secretary of State for Wales

Last week some waited with bated breath for the long-anticipated unveiling of a “better” plan for the embattled Port Talbot Steel site.

I was not amongst their ranks.

Put quite simply, I am fully aware there is no better deal than the one previously negotiated by the last Conservative-led UK government.

The agreement that we Conservatives reached with TATA Steel last year would firstly involve the government pumping in half-a-billion pounds towards the construction of an electric arc furnace, which would recycle domestic scrap steel to make a new product, meaning we would become more self-sufficient in the long term.

The second part would establish a £100-million transition board which would re-train all those who lose their jobs into alternative forms of employment.

At the time of the steel crisis, I was a minister in the Wales Office and recall the TATA management warning that it was either this deal or they would walk, resulting in an exodus of job losses exceeding more than 10,000.

The Conservative government moved heaven and earth to do all it could to prevent a catastrophic scenario unfolding.

This even involved a trip to Mumbai, India to visit the TATA group owner, Mr Natarajan Chandrasekaran, who repeated the line: our deal was the only viable one to safeguard the South Wales steel industry.

Job losses 

However, I am not naive enough to suggest that our deal is perfect because it is not; some job losses are, I am afraid, inevitable – and my thoughts continue to go out to those affected.

I must stress that our single focus during that strenuous period was mitigating the potential damage.

But for purely political reasons, the Labour party became undeterred in its efforts to denounce the deal in the strongest terms.

Welsh Secretary Jo Stevens and others did not publicly condemn it once, nor twice, but at every opportunity.

They even resorted to repeating far-flung myths, including our nation’s own security supposedly being plunged into question by the deal (despite the fact the Port Talbot site does not supply material to the defence industry).

Conveniently there was radio silence when it came to the Labour Welsh Government’s actions (or, should I say, lack of action) during this crisis.

Let’s not forget that Cardiff Bay did not lift a finger in offering financial aid in the initial stages, but did not hold back from joining the chorus of condemnation from their Westminster colleagues.

For reasons no-one, including industry experts, can fathom Labour believed they could reach a far “better” deal…

Fast-forward to last week, and the core elements of this “better” deal unsurprisingly mirrored the Conservative’s; it involved the same amount of investment, retained the transition board, etc.

This is not a new deal, it’s exactly the same (bar a slight alteration to the redundancy terms).

As my past colleagues warned, our deal was the only viable one.

False hope 

I believe that it is absolutely appalling for Labour to deliberately raise false hopes and intentionally lead workers up a garden path, knowing full well what they were doing.

There would have undoubtedly been countless steel workers listening and being convinced by what Labour were spouting.

Sadly, Labour put political posturing ahead of our steel workers’ livelihoods.

But where the government can now make a real difference is in outlining the time frame of when financial support will reach those impacted. Time is not on our side, so I urge Labour ministers to work swiftly to address this.

As a former MS (then AM) for South Wales West, I know that the steelworks is very much in the DNA of local people. In fact, it is a part of our history. After all, for generations families have met at the site and relied on it for stable employment.

Thus, it is incumbent upon the government to ensure that no-one is left behind when it comes to financial aid. Understandably there is still concern and worry, and this has not been helped in the slightest by the government’s antics.

The appalling politicalisation of the steelworks from Labour is something I have not witnessed in my political career for a very long time.

But government ministers must remember that words have consequences.

Therefore the people of Wales will not forget the countless empty promises Labour repeatedly made. In fact, I know people who personally feel let down by them.

Labour must own up to what they did and apologise unreservedly for raising false hopes.

Lord Davies of Gower is the Shadow Secretary of State for Wales, and a former MP and AM. He also served as Chairman of the Welsh Conservatives.


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Y Cymro
Y Cymro
3 months ago

The Labour party doesn’t exist anymore. I wish those deluded voters in Wales and ones giving their hard earned money over to Unions that bankroll these political charlatans. Keir Starmer is NOT, I repeat, NOT, a socialist nor does he care for the thousands in Port Talbot and surrounding areas dumped on the dole this Christmas or give a damn about Wales comes to that. A fine example are those pensioners losing their winter fuel payment on the borderline as he gives his cabinet minister Sue Grey £170,000 per annum, some £3,000 more than his own salary as PM. Absolutely… Read more »

Gwynfor
Gwynfor
3 months ago

I will never understand why the steel workers and those of similar industries are lionised so much in Wales.

I lost my job 3 times in 5 years during the last recession and no one came to my rescue. I just took it on the chin and moved on to the next opportunity. Why on earth should they receive £20,000 in compensation?

The steel plant is owned by a private company and they can do as they please.

Áile
Áile
3 months ago
Reply to  Gwynfor

As I understand it, employment law in the UK states that there are minimum requirements for redundancy based on time served that must be observed. The extra money offered to steelworkers was partly due to collective bargaining between the owner and unions and by an acknowledgement that the loss of these jobs could have a sudden damaging effect on the local economy. I presume that you being made redundant three times in five years, did not accrue much more than one months pay plus a weeks pay for each year service, unless they were group redundancies and extra redundancy was… Read more »

Jeff
Jeff
3 months ago

The company is a foreign entity playing the Uk for all it can get, they had you on the hook as well, decline is inevitable, if I worked there I would be looking else where for a job.

St Thatcher of Maggie flogged off the steel in the UK. A national security item, what is left?

Maesglas
Maesglas
2 months ago
Reply to  Jeff

But it was New Labour that allowed it to pass into Tata’s hands like they allowed the Water companies to become foreign-owned. Both main parties are as bad as each other and do little to ensure that utility companies are well-regulated or consumers get value for money.

Mr. Sneeze
Mr. Sneeze
3 months ago

Let’s not forget that the Cons caused this by removing the trade barriers that stop global producers undercutting UK production. That might be fine for pineapples and TVs but not when it lets China take control of a resource critical to national security.

Áile
Áile
3 months ago

It seems to me that both parties are playing politics with workers’ jobs.
Democracy is populist short termism. Not a good ideal politicians having sway on long major projects.
My sympathies to the people of port talbot

Brychan
Brychan
3 months ago

When you (and the new Labour Government) say “recycle domestic scrap steel” it means nothing. Scrap steel is an internationally traded commodity and it travels by ship. The destination is driven by the energy cost of running an electric arc furnace. Pumping £500m into such a furnace at Port Talbot does not guarantee jobs only a piece of kit that Tata can use if and when it likes. They already have an electric arc furnace in India, manned with cheap Labour and using cheap electricity from burning their coal. So it fails both objectives.

Maesglas
Maesglas
3 months ago

Starmer’s Labour are already masters of spin and PR but offer no solutions. There is no difference between what Sunak offered and what they are being offered now. Jo Stevens, Starmer’s Welsh Secretary, told us so much nonsense that also included claims that Wales would benefit from the HS2 rail settlement and a boost to the farmers losing out from the Brexit losses. Nothing is going to change with this Labour bunch in power,

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