British Steel halts plan to axe 2,700 jobs | USAEMALL.com

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British Steel has halted plans to lay off up to 2,700 workers at its plant in eastern England after ending a consultation on mass redundancies that was initiated by its previous management. 

Last month the company began consulting on job losses, days after its Chinese owner Jingye turned down an offer of £500mn of taxpayer funding to help the lossmaking business switch to a low carbon alternative to its traditional blast furnaces.

Ministers stepped in two weeks ago to seize control of the company and install a new management team.

On Tuesday interim chief commercial officer Lisa Coulson said it had been a “difficult and worrying time” for staff and their families. “I can however confirm that we are closing the redundancy consultation without action,” she said. “I would like to thank everyone in our workforce for their extraordinary dedication.”

Ministers are now trying to court potential buyers for the business from across the world including the US, although business secretary Jonathan Reynolds has conceded that nationalisation is a “likely option”. 

Reynolds has said the government had to step in after it became clear that Jingye was intent on closing down the company’s two blast furnaces at its Scunthorpe site in Lincolnshire.

Ministers last weekend passed the Steel Industry Special Measures Act giving them emergency powers to intervene when a steelmaker is facing financial difficulties or is at risk of ceasing operations. 

Shutting off the two furnaces would have left the UK as the only G7 nation without the ability to make steel from raw materials. Reynolds subsequently secured the necessary raw materials to keep the furnaces operating. 

On Tuesday, British Steel said that it would end the consultation on redundancies after having confirmed a “stable supply of raw materials” and the appointment of new executives to run the company. 

Sarah Jones, industry minister, will tell the House of Commons later on Tuesday that the company’s move was thanks to the government’s “decisive action”.

Charlotte Brumpton-Childs from the GMB union called the decision “fantastic news for steel workers and the people of Scunthorpe”. She said it “confirms the government is serious about saving 2700 jobs and the UK’s vital steel industry”.