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No job losses at Tata Steel - but contractors affected by cut backs

By SWEPGRoberts  |  Posted: January 23, 2014

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JOB losses are not on the cards for Tata Steel — but contractors and agencies are suffering due to cut backs.

The steel giant at Port Talbot has confirmed that it has no plans for job-losses amongst their employees, but cost reduction “will affect all parts of the business, including contractors and agencies”.

The Post understands that several contractors and agencies at the site are having to lay off scores of staff.

It is believed that one contractor has lost 17 agency staff two weeks ago and there are another 20 to be made redundant in the coming week.

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Another contractor said it is letting go around 20, and more jobs losses are on their way.

A Tata Steel spokesman said it is reducing costs across the business while “continue to face very challenging economic conditions”.

He said: “We are breaking production records — but productivity must be combined with profitability in order to build a sustainable business.

“Cost reduction will affect all parts of the business, including contractors and agencies.

“Contractors are taken on as a flexible resource according to business need and conditions. This flexible resource ensures the business remains nimble and can maintain its competitiveness.”

In regards to jobs the spokesman said there are no plans in the pipeline for any cuts. “We have no plans for job-losses amongst our employees,” he said. “What we are doing is reducing costs which is likely to impact on some contractors and agencies. It’s not appropriate for us to comment on the employment plans of suppliers. Any changes to their employment level is a decision for them.”

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