The steelworkers’ union Community has urged the government to resolve “question marks” over the sale of Tata Steel’s UK business in the light of the vote to leave the European Union.
Tata has sought to quell fears that Britain’s planned exit from the EU could derail the sale process, amid concern that bidders spooked by the potential impact of the referendum result could walk away.
The Indian-owned group hinted over the weekend that it was closing in on a deal to save the business, which includes the Port Talbot steelworks in Wales and its 11,000 staff. The seven potential buyers may have been encouraged by the weakness of the pound, which will make British steel less expensive to foreign buyers.
But Community said steelworkers needed assurances, amid fears that a weakened government may not be able to change laws governing the British Steel pension scheme, seen as crucial in pushing through a sale.
Roy Rickhuss, Community’s general secretary, said: “The EU referendum result and the government turmoil that has resulted have placed new question marks over Tata Steel’s sales process and the trade unions need to understand what actions government will take to safeguard the future of UK steelmaking.
“The prime minister and the business secretary have both looked steelworkers in the eyes and said they would do everything to save the industry. Senior leave campaigners like Michael Gove said that leaving the EU would help save steelmaking.”
He added: “It is important that the entire UK government now gets behind steelworkers and helps secure the future of their industry. During this period of economic uncertainty, it would be a disaster if our steel industry was allowed to crumble.”
