Tata announce £9m funding package for steelworkers

TATA STEEL, which announced 900 jobs cuts at their Scunthorpe base last week, have agreed upon a £9m deal with the government to support the employees affected by the restructure.

Tata’s regeneration arm UK Steel Enterprise has pledged £3m to support job creation in the Town, on top of its five-year budget of £10m.

The £3m funding is being matched by the Government to provide support for startup companies that are looking to expand and create jobs, as well as an additional £3m to train affected employees in local further education colleges.

Baroness Liz Redfern, leader of North Lincolnshire Council will lead a taskforce to identify local needs and consider whether additional support may be necessary.

Business Secretary Sajid Javid said: “This is a very difficult time for the workforce, so it is important that the Government and the company have come together to support people and the local economy.

“The Government has no intention of simply standing aside whilst the steel industry faces global challenges on a scale unprecedented in recent years. We will do everything we can to help workers and to ensure a level playing field for the industry.”

Tata Steel’s UK Steel Enterprise is also providing an additional £1.5 million to support job creation in steel communities around its Dalzell and Clydebridge sites in Scotland, where another 300 job cuts were announced.

Karl Koehler, chief executive of Tata Steel’s European operations, said:”I recognise this is a challenging time for the employees affected by the restructuring we announced.

“We are committed to doing everything in our power to support those impacted and through UK Steel Enterprise we will help create new jobs in the affected local communities.

“The UK steel industry is facing extremely challenging circumstances and we welcome the Government’s pledge to match our funding package for those affected.”

Last week, union Community, which represents a large majority of the Scunthorpe steelworkers condemned the belated action in helping the steel industry in the UK.

Roy Rickhuss, General Secretary of steel union Community said: “It is not enough for the David Cameron to ‘raise’ the issue of steel dumping with the Chinese, he should be telling them what action he will be taking to stop steel dumping.

“The UK government could also show its support for the UK steel industry by bringing forward the compensation package for energy intensive industry.

“UK steel making is on its knees but I know that steelworkers across the UK are determined to fight for their future for the sake of their jobs, their families and their communities.