The Price Of Steel

The British steel industry must not only be preserved, but expanded

The threatened job cuts at the Port Talbot steel plant show, yet again, that the British ruling class and their government remain committed to the course of deindustrialisation and destruction of skilled work in our country.  The decline of steel production in Britain is directly linked to the parasitic nature of British capitalism which refuses to invest and only exists to asset strip and stuff the pockets of shareholders.  With the proposed closing of Port Talbot blast furnace this country will lose the ability to make what is known as “virgin steel” , that is Steel which is newly constructed from raw materials rather than recycled.  The government and its media messengers are attempting to find ways to present this as a win for “carbon reduction” when in reality not only will this news be devastating for the 2800 workers whose jobs are under threat and will severely damage the social fabric of all of South Wales. Both the government and the (so called) opposition have been making a lot of noise recently about investing in industry but when it comes down to it they show no ability of willingness to even consider effective measures. 

The problem with British Steel production stems from the disastrous decision, made by the Tories and never challenged by the Labour Party, to privatise the old British Steel corporation in 1988. As soon as this privatisation was carried out steel production in Britain started to be cut back as mergers followed mergers and the old British Steel was merged into Corus and then bought out by Tata Steel.  At each stage in this process the big shareholders have been the winners and steel workers have been the losers as successive governments wring their hands about the loss of jobs but refuse to do anything to stop it. As a consequence Britain is now miles behind France, Germany, Italy, Spain and Poland in terms of steel production.  

A government that was committed to revitalising industry and the skills base that go with it would immediately nationalise the Port Talbot works in order to preserve the jobs and skills of the workforce there. This should then lead to nationalisation of the entire steel industry that still exists in Britain followed by joint work with elected representatives of the workforce to create a national steel production plan.  The industry can not only be saved but revitalised if the correct policy is put in place.  Neither Labour nor the Tories will be offering such a policy in the election this year though. That is because both parties are only committed to defending the profits of the parasitic capitalist class who are not interested in investing in Britain only in moving their money through the city of London.  Until we have a workers government in Britain, a government of workers for workers then we will continue to see our jobs and communities destroyed by our class enemies and their tame politicians.

We include below a draft motion that can be taken to union branches and trades councils calling upon the trade union movement to respond to this important issue.

Draft Model Motion On Port Talbot and the Steel Industry

This branch condemns the threat made by Tata Steel to the jobs of 2800 steel workers at the Port Talbot works.  The steel industry in Port Talbot has been built by the hard work of many generations of steel workers and to have it threatened with closure by its parasitic private owners will sicken any decent person. The potential closure of the Port Talbot works will mean the loss of the ability to make new steel in Britain and yet from politicians who are usually so quick to blurt out “patriotic” slogans we hear little or nothing but ineffective hand wringing.  

The decline of manufacturing and the loss of highly skilled and well paid work in this country. All trade unionists have an interest in defending steel production as it is vital for building projects but we also have an interest as workers in defending the skills base of our country and the ability of future generations to move into well paid jobs in manufacturing rather than an endless series of poorly paid service sector jobs which now dominate the economy.  

With this in mind we call upon the NEC to adopt the following position and to push for an emergency resolution to be adopted by the TUC General Council. 

1. That the closure of the Port Talbot steel works is absolutely unacceptable to our union and is an act of war committed by the owners upon the entire British working class.
2. That the government must immediately act to preserve all the jobs that are threatened by nationalising the Port Talbot plant. 
3. That the government must commit to rebuilding the steel industry in Britain in order to make the country self sufficient in steel production
4. That this policy should be directed by a joint working group of representatives from the relevant trade unions, government and specialists in steel production.