A new and improved deal for workers at Port Talbot steelworks has been announced following successful negotiations between Tata Steel, Trade Unions, and the government. The agreement, described as a significant step forward for industrial relations, will provide enhanced redundancy terms and support workers through a comprehensive retraining programme.
The deal, finalised after months of discussions, aims to secure the future of the Port Talbot site and support the steel industry’s transition towards a more sustainable future. Business and Trade Secretary Jonathan Reynolds praised the deal, emphasising its importance for both the steel industry and the local community. “Port Talbot has always been and will always be a steelmaking town,” Reynolds said. “This deal offers hope for the future of steelmaking in South Wales, a future that is cleaner, greener, and sustainable.”
Under the terms of the new agreement, workers facing redundancy will receive a minimum voluntary payout of £15,000, along with an additional £5,000 retention payment. Tata Steel has also committed to providing workers with paid retraining opportunities. Employees participating in the retraining programme will receive full pay for the first month, followed by a salary of £27,000 per year for the next 11 months. The programme will equip workers with new skills and qualifications, preparing them for future job opportunities, particularly in greener industries.
The deal also secures significant investment in the future of UK steelmaking. Tata Steel will work with the government to evaluate further investment opportunities, particularly in sustainable technologies. The construction of an Electric Arc Furnace at Port Talbot is expected to create 500 new jobs, helping to secure the long-term viability of the site.
In addition to the immediate benefits for workers, the government has committed to developing a Steel Strategy, which will be published in the spring of 2025. This strategy, created in consultation with industry leaders and stakeholders, aims to ensure a bright and sustainable future for the UK’s steel sector. The strategy will focus on decarbonisation and technological advancements, positioning the UK as a leader in green steel production.
The new deal follows Tata Steel’s decision earlier this year to close both blast furnaces at the Port Talbot site, putting 2,800 jobs at risk. The renegotiated terms, agreed during a meeting between Prime Minister Rishi Sunak, Business Secretary Jonathan Reynolds, and Tata’s Chair Natarajan Chandrasekaran, are seen as a lifeline for the site and the local community.
Welsh Secretary Jo Stevens hailed the agreement as a victory for both workers and the Welsh economy. “This improved deal secures the immediate future of Port Talbot steelworks, lays the foundations for future investment, and enhances protections for the workforce across South Wales, all without further cost to the taxpayer,” Stevens said.
The government has also announced plans to use the new Procurement Act to support the steel industry, ensuring that public sector contracts provide value for money while promoting economic growth and social value through steel procurement.
This deal is expected to have a transformative impact on Port Talbot and the wider steel industry, paving the way for future development and sustainability.