Trade union sources have this week signalled the possibility that Tata Steel Europe will cut up to 2,500 jobs at its units across the Netherlands, the UK, France and Belgium. The company has not confirmed the figures reported by the unions, but acknowledges that the transformation programme launched in June to strengthen the business could include a reduction of the workforce.
“Like all European steelmakers, we continue to experience challenging market conditions, made worse by the use of Europe as a dumping ground for the world’s excess capacity,” a spokesperson from the company tells Kallanish. “We launched a transformation programme in June to strengthen our business. We are aiming to develop a simpler and leaner organisation, capable of sustainably financing high levels of investment which are essential to our long-term success,” the spokesperson continues.
Local sources note that the situation should become clearer as from November, when official negotiations with the unions will start.
“The programme is gathering pace to urgently improve our performance. Proposals are being developed to improve our supply chain, our manufacturing performance and raw materials usage, as well as efficiency gains through digitalisation. We expect these to include a reduction in our employment costs which would be subject to the full consultation process with employee representatives,” the Tata spokesperson adds.