Staff at a steelworks that has been taken over by the Government in a bid to save jobs face “huge uncertainty”, a union has warned.
Charlotte Brumpton-Childs, GMB national officer, told the BBC that workers have dealt with a “yo-yo” while the matter went through the courts.
Meanwhile, the local mayor has said that the Government stepping in is “good news” but that a conclusion should not be rushed.
The High Court confirmed on Thursday that Speciality Steel – previously part of Sanjeev Gupta’s Liberty Steel business – would face a compulsory liquidation.
The operation, which has plants in Rotherham and Stocksbridge in South Yorkshire, will be placed into the hands of the Official Receiver and special managers from advisory firm Teneo.
Ongoing wages and costs to keep the plant running will be covered by the Government until a buyer is found.
Ms Brumpton-Childs told BBC Breakfast that “this is a time of huge uncertainty” for workers and “the question on everyone’s lips is ‘okay what happens next?'”.
She told the programme: “I think with the various court cases that have been ongoing over the last couple of months, it’s been a bit of a yo-yo where we’ve never been really sure what the court decision was going to be.”
She said that to some extent Thursday’s decision gives workers “more security” in terms of issues like pensions, “but in terms of the longer term ownership and future of Liberty Steel, those are the conversations that we’re going to have to start having very soon”.
A Government spokesperson acknowledged on Thursday that it would be a “deeply worrying time for staff and their families” but said that ministers “remain committed to a bright and sustainable future for steelmaking and steel making jobs in the UK”.
Labour mayor Oliver Coppard described Whitehall stepping in as “good news” but urged ministers to make sure the sites “have the brightest possible future”.
Speaking to BBC Radio 4’s Today programme, Mr Coppard said: “The Government stepping in to take control now is good news because it just brings to an end the uncertainty that we’ve seen on the sites.
“I think that was the thing that was killing the business slowly, we now have that uncertainty brought to an end, that’s a good thing.
“But I now need the Government to make sure that these three sites, two in Rotherham and one here, have the brightest possible future.
“So, we have to get a new owner in, the Government, I think, should take their time over that process, not a never ending amount of time, but certainly not rush to a conclusion, to give people on the site that future that they deserve.”
The general secretary of Community union said the “Government’s intervention must mark a turning point to deliver certainty” for the businesses.
Roy Rickhuss said in a statement that “jobs must be protected” and wages should be paid as well as outstanding pensions contributions being secured.
He added: “We welcome the Government’s intervention which is yet another demonstration of our Labour Government’s commitment to delivering for steelworkers and our vital foundation industry.
“However, in taking control of the business the Government has assumed responsibility for our livelihoods and our communities, and we will of course be holding them to account.”
