British Steel workers in Scunthorpe feel more optimistic today about their future after the government assured them that they would be able to secure the raw materials necessary to prevent the blast furnaces shutting down.
This weekend, the Parliament was called back to adopt emergency legislation in order to save a plant that faced imminent closure.
Jingye’s Chinese owner had said that the blast furnaces were “no more financially sustainable”. The furnaces could not produce steel without the coal needed to keep them running. Around 2,700 jobs are at risk.
Business secretary Jonathan Reynolds stated in a statement released this weekend that the government “worked relentlessly” to find an alternative solution for the plant.
He stated that it had made a “generous offer of support to British Steel, which included sensible, common-sense conditions to protect workers, protect taxpayers’ funds, and create an economically viable company for future.”
Reynolds said that Jingye had made it clear that she did not intend to purchase enough raw materials to run the furnaces.
The company, in response to the government’s proposal, made a counter-offer to the UK government asking it to transfer them “hundreds and millions of pounds”, without any guarantee that the money or assets would not go to China.
Reynolds told the MPs that “in this situation where time was running out, it wasn’t an option to do nothing.”
“We cannot, will not and will never stand by as heat escapes the UK’s blast furnaces, without any planning, due process or respect for the effects.”
The Emergency Legislation passed over the weekend grants the Department of Business and Trade the power to direct the company, i.e., keep the staff employed, order materials and keep furnaces running.
Jingye, however, retains its ownership at the moment. The government is hoping to attract private investment, but it has stated that “public ownership” (nationalisation) will be the most likely option.
Charlotte Brumpton Childs, GMB national officer, stated that she was “wholly assured” that coking coal needed for the furnaces will be paid for in the coming days and delivered.
GMB General Secretary Gary Smith stated that workers were concerned about “industrial violence” if Jingye executives gain access to the site.
He said: “I know that people are still worried, but these individuals did heroics yesterday in order to give the steel industry a fighting chance. They were legitimately worried about industrial sabotage.
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