2. Urgent Question: Tata’s Port Talbot Site

– in the Senedd on 22 November 2016.

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(Translated)

[R] signifies the Member has declared an interest. [W] signifies that the question was tabled in Welsh.

Photo of Elin Jones Elin Jones Plaid Cymru 2:15, 22 November 2016

(Translated)

I have selected three urgent questions under Standing Order 12.66 and I call on Bethan Jenkins to ask the first urgent question.

Photo of Bethan Sayed Bethan Sayed Plaid Cymru 22 November 2016

(Translated)

Will the Minister make a statement on staffing levels at Tata's Port Talbot site? EAQ(5)0075(EI)

Photo of Ken Skates Ken Skates Labour 2:16, 22 November 2016

Yes. Tata Steel directly employs around 3,600 people at Port Talbot. Tata is currently recruiting 49 experienced agency staff to replace 21 vacancies arising from natural attrition and 28 as a result of voluntary severance.

Photo of Bethan Sayed Bethan Sayed Plaid Cymru

Thank you for that detail. I’m raising this now because worried steelworkers have come to me very recently to say the company, as you have said, are in the process of employing staff at Port Talbot—although they quoted to me 200 to 250. So, it would be good if we could have a breakdown on that. You know that they obviously declared the cuts of 750 workers earlier this year. Staff want to know if this extra recruitment is being done for safety reasons, as many of them continue to be concerned about safe staffing levels in light of the announcements that were made earlier this year. I have previously raised these concerns with you and with other Ministers and I know that much of it is down to confidence, we’ve been told, by the trade union and by Tata. But, as you will understand, nothing should compromise safety under any circumstances.

You said in your reply to me that there are going to be agency staff that are going to be employed. I was wondering if you could tell me if any of those who are going to be employed are former full-time Tata employees, because of course many of them are concerned that they are not being prioritised in this process that is currently being undertaken by Tata. Are you aware of that? What discussions are you having with them so that we can make sure that any employment in that area is sustainable employment?

Photo of Ken Skates Ken Skates Labour 2:17, 22 November 2016

I’d agree entirely with the Member that nothing should compromise health and safety in the workplace, be it in the steel sector or any other sector for that matter. My understanding is that the 49 workers are over and above the 750 tranche that the Member refers to. All are trained and hold safety passports. It’s also my understanding that the unions and management have agreed to this recruitment approach. There is no evidence to suggest that the recruitment of 49 agency staff in any way relates to concerns around health and safety at the site but, if any members of the workforce do have concerns regarding health and safety, they should be reported.

Photo of David Rees David Rees Labour 2:18, 22 November 2016

Cabinet Secretary, I join you in expressing concerns that health and safety is a priority and we must ensure that everything is done to ensure the safety of our workers, particularly 15 years after the horrific accident that occurred in blast furnace No. 5. But, do you join me in congratulating the actual workforce? Because the result of taking on new employees—and they are going to be Tata employees, they’re not agency staff that will be employed, it’s Tata employees they’ll be employed as—through an agreement between trade unions and management shows that the level of production that has been achieved because of the bridge is actually succeeding and the works is actually going from strength to strength?

Photo of Ken Skates Ken Skates Labour

Yes, I would join with the Member in welcoming the recruitment of 49 additional workers, which is to support production. I think it’ll send a message that the bridge has indeed worked, is working, and the steel sector in Wales is in a position of relative strength compared to where it was back in January of this year. We will go on working with Tata and with all steel companies in Wales to ensure that the sector has a prosperous future.

Photo of Suzy Davies Suzy Davies Conservative 2:19, 22 November 2016

I just wonder if you can clarify this, because I don’t think you actually answered the question that Bethan Jenkins put to you in a way that I understood. Are these agency staff or not? Because David Rees seems to suggest they’re not. In your response to us originally, you suggested that they are. They may be agency staff, but they may be former Tata employees. Can you clarify that? If they’re not Tata’s former employees, can you tell me what the taskforce has done—obviously, part of their role is to deal with employment—to ensure that Tata’s first pick is always its former employees, where that’s relevant? Can you tell me also, if there is to be a $500 million investment in the plant, which is suggested at the moment, is this period of employment, or are these employees, part of a more strategic plan from Tata to take on more staff, or is this just covering over a sort of temporary need to backfill some jobs that have disappeared?

Photo of Ken Skates Ken Skates Labour 2:20, 22 November 2016

My understanding is that this is strategic, and it was remiss of me not to give more detail to Bethan Jenkins regarding the question about the agency workers. These are Tata staff—former Tata staff—who have been laid off. They are being brought back into work, and I’m sure that that’s something that we should all welcome.

Photo of Caroline Jones Caroline Jones UKIP

Cabinet Secretary, in recent weeks, the media have been reporting that Tata plans to make a significant investment in the Port Talbot plant of around £0.5 billion. What discussions have the Welsh Government had with Tata regarding their investment plans? Do you know whether they plan to reline the blast furnaces or introduce arc furnaces to the Port Talbot site? Thank you.

Photo of Ken Skates Ken Skates Labour 2:21, 22 November 2016

We continue to have discussions with Tata regarding steel sites in Wales, but I’m unable to go into any detail about these projects due to the ongoing negotiations that are taking place and the discussions that are being carried out right now. But, I do hope to be in a position in the coming weeks to make an announcement.

Photo of Elin Jones Elin Jones Plaid Cymru

(Translated)

I thank the Cabinet Secretary.