British Steel announced that it would not be continuing with its consultation regarding the dismissal of 2,700 employees at its Scunthorpe facility.
In March, the company owned by Jingye in China proposed that close two blast furnaces on the site because of significant financial losses.
The government intervened earlier this month in order to ensure raw materials were delivered on site, allowing the furnaces to remain operational.
Ministers received emergency powers in a rare Saturday recall to parliament. They were given the power to take control over British Steel and continue its production. The Steel Special Measures Act passed on April 12.
The Department for Business and Trade has stated that it will not exclude nationalisation of the company, if needed.
British Steel confirmed yesterday, 22 April, that it had officially withdrawn its HR1 redundancy form that was submitted to DBT in March. All operations will continue.
The company stated that it worked “at speed” with the government in order to secure the raw materials supply, and avoid the need for “salamander tapping” on one furnace, which is drilling a hole at the bottom of the furnace to release molten metal or slag.
Lisa Coulson said, “This was a very difficult time for British Steel employees and their families. I can confirm, however, that the consultation on redundancies is closed without any action.
“Since our government passed legislation, we’ve been working night and day to stabilize our operations.
The work we did to secure the raw material we need for Queen Anne and Queen Bess, means that we can run them both continuously.
Unite, a union that represents British Steel workers, declared the company “has come to its senses”.
“This is just the beginning of the nationalisation process,” said a spokesperson.
The government must now implement a complete overhaul of its energy policies, including a commitment to investing in renewables that will lower energy costs for heavy industries like steel production.
Alun Davies, National Secretary for Steel at the Community Union said: “We are pleased with these positive developments that follow constructive discussions between the steel unions and the Labour government, as well as British Steel management.”
We look forward to the continuation of these productive relationships in the future. Scunthorpe Steelmaking was saved by this collective effort and the resolve of its workforce.
We will continue to work hard to give the business the bright future that it deserves.
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