The UK steel and oil sectors face a "grim" September as up to 6,000 jobs are set to be cut. Port Talbot in Wales expects to lose 2,800 jobs, while British Steel in Scunthorpe may see up to 3,000 positions axed. An additional 400 jobs are at risk at Scotland's Grangemouth oil refinery.
These cuts are linked to the industry's transition towards greener production methods. The government is negotiating a £500 million grant for Tata Steel to build an electric arc furnace at Port Talbot, replacing the last blast furnace. This shift aims to reduce carbon emissions but requires fewer workers.
Both Tata Steel and Jingye Group, owners of the affected plants, claim their facilities are losing £1 million daily. The government's stance is to support new, environmentally friendly facilities rather than subsidize loss-making, carbon-intensive plants.
Unions have negotiated redundancy packages and retraining schemes for affected workers. However, concerns remain about the UK's ability to produce virgin steel once blast furnaces are closed.
The government maintains that "Decarbonisation does not mean deindustrialisation," but acknowledges the need for tough decisions in balancing environmental goals with preserving industrial jobs.
