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With No Alternative Plans in the Offing, Tata Steel Expected to Cut 720 Positions
12/04/2015 - Tata Steel and union representatives have failed to agree on a plan that would mitigate layoffs at its mini-mill operation in northern England, meaning that Tata likely will execute on its plan to cut 720 positions there and elsewhere, according to the The (London) Telegraph.
"While Tata Steel is thankful of the work done by the trade unions via their consultants, Syndex, none of the recommendations proposed would have given us the solid base required to ensure we can continue to employ around 1,500 people in South Yorkshire as we continue to operate against strong market headwinds,” a company spokesperson told the newspaper.
In July, Tata announced that it would adjust the business model for its specialty steel and bar unit to focus on high-value markets, such as aerospace. It further said the change would result in a workforce reduction, with Rotherham bearing the brunt of cuts.
Tata said it was changing strategies because the unit is losing money on account of imports and high electricity prices. The job cuts are in addition to those that are being made at other U.K. operations.
In July, Tata announced that it would adjust the business model for its specialty steel and bar unit to focus on high-value markets, such as aerospace. It further said the change would result in a workforce reduction, with Rotherham bearing the brunt of cuts.
Tata said it was changing strategies because the unit is losing money on account of imports and high electricity prices. The job cuts are in addition to those that are being made at other U.K. operations.
