Scunthorpe: Firms fear potential steel job losses

Steelworkers, their families and small businesses say their lives are on hold as the threat of significant job losses at Scunthorpe steelworks continues to hang over them.

As part of a £1.25bn decarbonisation plan, British Steel would close the plant’s two blast furnaces and replace them with a greener electric arc furnace.

The union said the move would lead to 2,000 redundancies in steel and iron production.

The new Labor government said it would work to save jobs as part of negotiations with British Steel, which also said it would support affected workers.

Around a quarter of the workforce in Scunthorpe is employed in manufacturing – including 4,000 at British Steel, according to North Lincolnshire Council.

And much of the private sector is involved in the plant’s logistics and supply chains.

This worries those in the hospitality and entertainment industry who depend on disposable income, including Stuart Ross, owner of Ashby Bowl in Scunthorpe.

Mr Ross said many of his customers were steelworkers or had some connection with the steelworks: “They are very worried. People are coming into retirement and they don’t know what is going to happen to them.”

“If they don’t have money, they won’t spend. That will be the entertainment industry, the leisure industry. Everything, everything will be affected.”

“He could be the urban killer.

As Steve Barnes bagged bottles of sparkling Coke in his High Street sweet shop, he recalled what it was like to lose his job at the steelworks: “It was absolutely gutting at the time and it will be the same for these people. .”

Mr Barnes was one of 4,000 steel workers made redundant in 1981 when large parts of the Scunthorpe plant closed.

He said his business is doing well for now: “We’re riding a little crest of a wave because sweets are almost a fad thanks to Tik Tok, but it’s only good if people have money.”

He fears customers will cut back on the treats: “The steelworks provide many of the higher paying jobs in Scunthorpe, so obviously a huge chunk of spending power comes from the town.”

British Steel said replacing Scunthorpe’s blast furnaces with an electric arc furnace would help with its low-carbon economy plan, which aims to deliver zero-purity steel by 2050.

But the move is dependent on what its Chinese owner Jingye described as “adequate support” from the UK government, which was widely reported to be a request for £300m in subsidies.

As negotiations continue, Business Secretary Jonathan Reynolds said: “Steel is vital to a vibrant and secure economy.

“Our steel sector needs a government working with unions and business to ensure a green steel transition that is good for the workforce and delivers economic growth.

“Decarbonisation does not mean deindustrialisation and as part of these negotiations I will work to preserve jobs and secure the future of steel communities for generations to come.”

British Steel said it would support staff affected by its plans, adding: “The new government is well informed about the challenges facing our business and the timely support we need to decarbonise.

“We look forward to working together to build a clean, green and sustainable future for British Steel.”

Meanwhile, Scunthorpe Labor MP Sir Nic Dakin said he was concerned about the closure of the blast furnaces:

“The Labor Party has been clear during the election period that we wish to retain the UK’s primary steelmaking capacity.

“There’s no reason it can’t be retained here in Scunthorpe where we have good blast furnaces and of course we need to move to cleaner and greener technologies over time, but these are discussions that need to be had.

“We need a sensible transition, and we may be able to keep the blast furnaces going for much longer than the plans that are being talked about suggest.”

Federation of Small Business regional development manager Paula Gouldthorpe said there needed to be support for those facing redundancy.

She added: “Some might look for alternative roles, some might decide to start their own business and I think it’s really important for local authorities and for the government to look at that wider package of support.”

Jamie Stringer works in the continuous casting section of the plant: “We take liquid steel and turn it into hard steel that is rolled into different products like rails.”

Like many others, his family came to Scunthorpe for the steel: “My grandfather traveled from London in the 1960s to work in the factory, so it runs in the family.

“I trained and have been there for about 19 years.

He said morale was low because of the uncertainty: “People are really looking for answers and want to know what’s going on with the blast furnaces because they are a major part of the steel plant.”

But Professor Ian Barnes, from Lincoln University’s School of Economics, believes Scunthorpe can cope with even bigger changes: “When you think 40 years ago you had 30,000 people working in the steel industry, it’s very well adapted to the current situation.

“One of the great things about Scunthorpe is the good road and rail links.

“He has a lot going for him, provided he gets the right kind of jobs over time, but it will be an adjustment period.”