Thousands of British Steel jobs at the Scunthorpe plant are under threat as two key furnaces are to be closed earlier than anticipated. Unite believes that up to 2,500 workers could be redundant before Christmas. The firm is working out a deal with the government for £600 million to help it switch over to cleaner technologies, but there is still much uncertainty.
Thousands of workers at the British Steel plant in Scunthorpe are staring into the abyss amid reports that the company is considering closing its blast furnaces earlier than expected, possibly even before Christmas. The GMB union has issued a warning for 2,500 redundancies in what would amount to a jobs slaughterhouse locally in North Lincolnshire.
The situation is critical, but British Steel, now owned by Chinese company Jingye, has yet to decide to close. It is in discussion with the UK government for a massive £600 million of taxpayer support to shift to lower-polluting technology. Its plan for the transition involves replacing the blast furnaces with electric arc furnaces, cleaner but requiring significantly fewer workers.
The GMB union has called for an immediate meeting between British Steel and the government with workers, saying staff needed consultation on any potential early closing of the blast furnaces that would dramatically change their lives and the local economy.
British Steel earlier announced plans for an electric arc furnace as part of its decarbonization drive. The new development is seen as a move in the interest of rejuvenation of the industry of steelmaking and cutting carbon emissions. However, the transition to electric-arc steelmaking might prove at a huge cost to the workforce, as electric arc furnaces require far fewer workers to operate, leading to a rise in fears over major job losses.
It includes not only the building of an electric arc heater at Scunthorpe but also another at a site in Teesside, North Yorkshire. This would be the return of steelmaking to Redcar, where its blast furnace was demolished in 2022 after being closed in 2015. This attempt at restarting steelmaking in the area is good news, but it will do little to comfort the workers at Scunthorpe.
British Steel has previously informed unions and workers that it would keep blast furnace operations going as long as was necessary until the electric arc furnaces were working at full capacity. All have now been blindsided by the early closure option. Charlotte Brumpton-Childs, a national officer for the GMB union, said: “Early closure of the blast furnaces at Scunthorpe would be devastating for the community and workforce.”. “The unions have been given assurances all along that blast furnace operations would continue throughout the construction of an electric arc furnace. There has been no consultation over an early closure.”
For the most part, it is an anxiety-ridden circumstance for workers and their families. Many are worried about what lies ahead, as the holiday season is approaching. The likely loss of 2,500 jobs would hit pretty hard on the local economy, steered mainly by the steel industry. The effects will be felt throughout the region, from local businesses down to schools and public services.
British Steel has tried to reassure people that no final decision has been made over the closure of its blast furnaces, while admitting its raw material imports have fallen because of ongoing production issues. The company said it was “working hard” to restore production levels. “We’re discussing our decarbonization plans with the government, and no final decision has been made,” the company said in a statement.
That is part of a wider upgrading effort underway in the industry toward steel production using electric arc furnaces, cutting down on the dirty environmental footprint the industry leaves behind. Unlike blast furnaces running off coal and issuing a good deal of carbon emissions, electric arc furnaces can recycle scrap steel using clean electricity. This shift is key to the future of the industry, but it comes with challenges, especially for the workers who stand to lose their jobs in the process.
Unions have previously estimated that some 2,000 fewer workers would be needed if electric-arc furnaces were introduced at Scunthorpe, but so far British Steel has refused to give any specific details on the number of jobs that may be impacted. Fear was only heightened amongst workers due to a lack of clear communication.
As the discussions between British Steel, the UK government, and the unions take place, workers at Scunthorpe are left hoping that there is a resolution that takes into consideration the livelihoods of many. The future of steelmaking in the United Kingdom is at a crossroads, and decisions taken in the forthcoming weeks may influence this sector for many years.
For the time being, workers and families are left wondering if they’ll have a job to return to following the holidays. The GMB union is fighting hard, but the road ahead will bring surprises. The stakes are great, and it very well may affect the community as a whole.
This Christmas, workers in Scunthorpe will be wishing for a little more than just a few presents under the tree; they will wish for job security, stability, and a future in the industry to which they have all given their lives.
