Hundreds of Corby workers could be affected after steel giant Tata confirmed it plans to sell its UK assets.
Unions reacted with shock and anger at the company’s decision, taken at a board meeting in Mumbai yesterday (Tuesday).
Calls have now been made for the Government to intervene to save the industry from total collapse.
A statement by Corby Council leader Tom Beattie said: “The recent news about the future of Tata Steel in the UK is deeply worrying.
“The UK steel industry is vital to not only Corby but to the UK economy as a whole.
“I am heartened that the Government has stated that they are prepared to explore all options in order to save it.
“The Government must be true to their word and really need to step up to the plate here and demonstrate their commitment to this core industry.
“All options must include nationalisation, temporary or otherwise, while a new buyer is sought.
“I would also urge Tata to respond positively to the Government’s request to allow adequate time to explore the option of a new owner or owners.
“The Corby plant is a very successful producer of high quality steel tubes, used in major infrastructure projects both here in the UK and abroad.
“Tata Steel continues to be one of the biggest and most important employers in the borough.
“I remain hopeful that a buyer can be found to continue manufacturing here in Corby.”
The general secretary of the UK’s biggest union, Unite, said today (Wednesday) that the growing chorus of calls for renationalisation cannot be ignored by the Conservative government.
Len McCluskey, whose union represents tens of thousands of steel and manufacturing workers including those at the Corby site, said: “We are now in the grip of an industrial crisis.
“Decisions taken in the days to come will determine not just the futures of 19,000 workers and their families, across 14 sites, but the very success of this government’s own economic programme.
“This is the time for the Government to say categorically, without hesitation, that these assets will be taken into safe-keeping by the nation because without them our economy will not flourish.
“We are already seeing jobs going in the supply chain because of the uncertainty over Tata’s future – our fear is this will snowball if insecurity is allowed to swirl around our steel sector.
“The unity of voices – from business to government – to say that temporary nationalisation is the way forward must not be ignored.
“This helped save the Scottish plants.
“It has ensured that the Ilva plant in Italy survived – it must be deployed for the rest of the Tata operation.
“These plants are profitable, with the best workers producing some of the best quality products in the world.
“Every single one of these plants and its workers should be regarded as a national asset and as such it is government’s duty to safeguard them for the nation.
“Such is the scale of the matters before us that the Prime Minister must assume charge of the strategy from here on in.
“This will send the clear signal to the workforce, the industry and potential buyers that the government is serious and driven about saving this foundation industry.
“In addition, the government must act now where the Budget stood silent.
“We need energy costs reduced.
“Tariffs on cheap imports must rise to the level where they do make an impact – the UK government could do this today.
“Anything less that active government intervention will see this vital sector lost and with it our capacity as a major nation to support our own economy.
“Billions of pounds have been committed by the Conservative government to the welcome project of renewing our infrastructure but unless this involves UK steel, the promised growth from this initiative will not materialise.
“In addition, there is the certain pain that will be felt by communities, local economies and the national economy of sending tens of thousands of skilled workers to the dole.
“We have urged Tata too that is has obligations to this workforce and the people of this country.
“There should be no `cut and run’ from them.
“They must give all parties the time to find a buyer and retain the industry so that it can manufacture the steel we need, not simply process cheaper, poor quality imported products.
“Unite extends a hand to the government to say that we will work with them on all serious efforts to keep our steel sector alive.”