British Steel: Unions endorse Jingye takeover but 500 jobs could be at risk
Unions have backed Chinese firm Jingye’s rescue deal to save British Steel after extensive discussions but up to 500 jobs could be cut under new ownership.
The Steel Committee met with Jingye representatives to discuss their business plan and in particular their proposals relating to employment, including pay and terms and conditions.
Any new owner could offer new contracts with statutory minimum terms and conditions due to British Steel being in liquidation.
The employment package is said to be in the context of Jingye’s planned £1.2bn investment and the unions believe they have agreed a positive outcome in a number of key areas.
The points included ensuring “any changes do not disproportionately affect employees differently, protecting shift premia and avoiding reductions in regular take home pay”.
A statement from the unions said: “We have seen the detail and this investment would transform the business and secure the future of British Steel.”
It said that “if the business is to survive, then change is required” and that full details were now being drawn up.
However, the unions also accepted Jingye was likely to cut up to 500 jobs, adding that they could not endorse this decision.
“In endorsing this package in principle, the trade unions believe they have struck the right balance between delivering cost savings and maintaining jobs with decent terms and conditions to drive the new business forward,” said Ross Murdoch, national officer for GMB Union.
Operations director for Community added: “Faced with challenging circumstances we believe that the dialogue between Jingye and the unions has produced a better deal for employees than what was otherwise on the table.”
The Chinese dealmaker needs to finalise its £50m takeover of the insolvent British Steel by the end of next month.