4. 4. Plaid Cymru Debate: Tata Steel

Part of the debate – in the Senedd at 3:30 pm on 18 January 2017.

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Photo of Bethan Sayed Bethan Sayed Plaid Cymru 3:30, 18 January 2017

Yes, they are, but they’re not taking a view on this deal, and I think they should be taking a view. If they think that it’s the right deal to take, then they should be saying that, and I haven’t heard them going that far.

Generally, I’ve found the steelworkers I’ve spoken to divided into two camps. It isn’t ageist to say that the older staff are more entrenched, more likely to vote ‘no’ to any proposal that closes the BSPS—and who can blame them? Since the 1980s, successive Governments have sought to redefine pensions as benefits. This painfully remains the case with former workers from ASW. Pensions are wages deferred—that is a fact. The workforce should have the right, then, to have that pension when they do retire.

The company, I think, can count its lucky stars that it’s been given such an easy ride in the media. Those much-advertised losses, it transpires, were against plan—what the company hoped to earn—not real losses. We’ve also seen, as Adam mentioned earlier, the pension scheme deficit go up and down, like a pleasure cruiser on hurricane-lashed high seas. It’s been £2.5 billion, £2 billion, £700 million, £480 million, and, most recently, £50 million. And now I’m reading it’s heading back to £2 billion. The reasons given are many and varied, but here’s what I don’t understand: if Tata is so exercised about the BSPS, then why is it running into the arms of ThyssenKrupp, whose €9.7 billion pension fund was two thirds wholly underfunded six months ago? Maybe it will make the same kind of miraculous recovery we saw with the BSPS.

The younger steelworkers, I know, are more concerned with how the commitments, not guarantees, will actually work out—whether they will have a working life in steel. To that end, there are all kinds of questions about the promised £1 billion investment. Again, this comes with strings attached. [Interruption.] I don’t have time, sorry, David.

Reading between what Tata and the multi-union have said, not only will the current UK operation fund this investment, but it is dependent upon UK sites making twice that amount each year. The figure of £200 million a year is a target in the transformation plan that began with over 1,000 job losses at the start of this year. Although this proposal was examined and endorsed by consultants for the union, it remains a big ask in a global market where overcapacity and cheap imports remain abiding problems, regardless of energy cost reductions.

I’ve mentioned the Tata roadshows, and I’ve mentioned the fact that many people still cannot make their minds up in relation to how they should go on this particular deal. I’ll finish with a quote that I’ve had from one of those steelworkers. He says, ‘I’ve given the works over 30 years of my working life. In that time, I’ve seen a lot of change, and a lot of good boys come and go. I remember British Steel, Corus, and now Tata. In that time, we’ve got better and better at making steel, smashing production records, one after the other, and the plant we’ve got gets older and older. I’m a steel man; I make steel. I like to think I’m good at it. I’d want my union to be good at looking out for me. I pay them for that; instead, silence. I’m going home and my wife is asking me, “Well, what does all this mean?”, and I don’t know. I’m clever enough to know that, when you smash production records and your employer responds by making job cuts and threatening closure, any deal he puts on the table needs a close look. All I want to know is: who will help us? We’re used to politicians ignoring us; now it seems our own trade unions are doing the same. We need their help.’