www.net-cymru.co.uk Industry in Wales

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Related Pages on this Site: Reactions to the Steel Crisis Industrial Heritage Industrial Sites and Museums

Items on this page in natural order:

History
The Job Losses
Why Wales?
Comment

R.I.P. Welsh Steel

History Prior to 1988 steel was a nationalised industry in Britain. During the 1980s there were massive job losses under the Consevative Government of Margaret Thatcher. 1988: British Steel was privatised. 1999 (7 Jun) Merger of British Steel with the Dutch steelmaking organisation, Hoogovens. The new company, Corus, pays out £700 million to shareholders. 2000-2001 Fall in Corus share value. Rise in the price of Sterling against the Euro. 2001 (30 Jan) The union offers to buy the Llanwern factory. This is rejected on the grounds that this would create unwelcome competition for Corus. 2001 (1 Feb) Corus announce the loss of over 2500 jobs at four plants in Wales.

The Job Losses

• Llanwern (Newport) - 1340 jobs
• Bryngwyn (Gorseinon) - 130 jobs
• Shotton - 319 jobs
• Ebbw Vale - 781 jobs

The closure of the Ebbw Vale plant ends a tradition of iron and steel making in the Welsh valleys which goes back 200 years.

"This is a marriage made in hell." First Secretary of Wales, Rhodri Morgan, on the merger between Hoogovens and British Steel.

Why Wales?

The Labour Government have refused to accept the European Union Directive on Information and Consultation with workers. Unions believe that this makes workers in the UK easier to sack than those elsewhere in Europe and that this is why the cuts have come in Britain, not Holland.


Comment

The Government offered help. Corus said no. The Union offered to buy the business. Again Corus said no. The reason appears to be that they don't want the competition.

The cutbacks announced by Corus will cause hardship to many families in Wales and have provoked widespread indignation - see Reactions to the Steel Crisis .

What is particularly sad in this affair is that the reasons for the job losses are not to be found on the shop floor or even within Wales.

It is not a case of an overmanned, inefficient industry which can't compete with plants elsewhere. The productivity per worker is amongst the best in the steel industry throughout the world.

It is indeed because they are competitive that they are being forced out of work rather than allowed to take over the plant. As independent producers they would present competition, which Corus does not want.

They are an obstacle to putting up the price of steel and the resulting increased profits by Corus.

It is perhaps inevitable that those with political power will be quick to express their indignation but are unlikely ever to accept responsiblity.

Of course in the imediate crisis they are powerless - spectators like the rest of us.

But they have gone along with the policy of a strong pound, which has been partially reponsible for the exchange rate changes which allow those working for Euros to produce more cheaply than those working for Sterling.

The insertion of private capital into what was previously state-run activities is accepted doctrine of all the major political parties. They welcomed the money when it came and accepted the devolution of the decision making to those whose interest it is to make money.

We are now reaping the harvest of that process. The future of Wales and the People of Wales are not factors in decisions are vital to the future of Wales and the People of Wales. They are made by a relative handful, who have nothing in mind but their own financial interests and pleasing their shareholders.

Whether the Government is responsible or not responsible, those in Government are spectators just like those who work in the plants.

But viewing events from Cardiff Bay or Westminster is infinitely more comfortable than from the point of those who have invested a lifetime in steelmaking and who are contemplating going into a job market where there is much unemployment and no demand for their skills - and often with a family to feed and a mortgage to pay.

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Eddy Hunt webmaster@netcymru.co.uk

This page was last updated on 9 February 2001 _________ Back to: net-cymru Home Page