by Steve Sweeney

UNIONS demanded assurances on job and pensions security after yesterday’s announcement that Tata Steel has begun talks on the sale of its Speciality Steels arm.

The company revealed that a “letter of intent” had been signed to start negotiations for the £100 million sale, which includes several South Yorkshire sites, to Liberty House.

Around 1,700 workers are employed by Speciality Steels, which supplies the aerospace, automotive and oil and gas industries.

Tata Steel UK chief executive Bimlendra Jha called the talks “an important step forward in seeking a future for Speciality Steels,” while Liberty House Group executive chairman Sanjeev Gupta said the sale would be a “hugely important milestone transaction.”

Mr Gutpa pledged to “engage fully with the trade unions and the local community,” adding: “We are counting on their full support.”

Steel union Community general secretary Roy Rickhuss welcomed the news, which came “after months of uncertainty and delay from Tata.”

He said: “The number-one priority for Community will be ensuring that Liberty have a proper plan to protect jobs.”

Mr Rickhuss vowed that the union would fight to ensure the “loyal workforce have a pension plan that provides dignity and security in retirement.”

Unite national officer for metals Harish Patel said: “We can at last see some movement towards certainty for our members,” though he warned that “the devil will be in the detail” and called for an independent audit of Tata, “job security for the workforce” and “security for the pension scheme as a matter of urgency.”

Labour’s steel spokeswoman Gill Furniss said: “After months of worry, steelworkers and their families in South Yorkshire at last have some certainty over what the future holds.” She said the “key test for Liberty will come in the detail of their plans for investment and jobs.”

Ms Furniss warned of “huge challenges facing the steel industry nationally” and said that, while bosses have made “all the right noises about saving steel,” now was the time for the government to act.

The sale is expected to be completed early next year.

We need you support to keep running. If you like what you read please donate by clicking here