Training package part of steel deal

Training

The news in January that Tata Steel had decided to close both blast furnaces at its Port Talbot site triggered fears about the 2,800 jobs at risk and a lack of clarity about the re-training package that would be offered.

With Tata Steel now signing a £500 million Grant Funding Agreement with the UK Government, the picture on skills is becoming clearer. For its part, the Labour Government described the deal as ‘new and improved’ and said that negotiations had delivered improved redundancy terms and a skills package for employees who want to earn whilst they retrain.

For any employee in Port Talbot selected as being at-risk of compulsory redundancy, the company will provide the option for them to participate in a paid re-training scheme. Employees on this training programme will be on full pay for the first month and £27,000 per annum for 11 months following.

These salary costs will be funded by Tata Steel, which also anticipates that at least 500 new jobs will be created to support the construction of the Electric Arc Furnace.

Secretary of State for Wales, Jo Stevens, said: “This improved deal secures the immediate future of Port Talbot steelworks, lays the foundations for future investment, and enhances protections for the workforce across South Wales. This Government is determined to support workers and businesses in our Welsh steel industry, whatever happens.”