The Hague (AFP) – Indian-owned steelmaking giant Tata Steel announced Wednesday it was slashing around 1,600 of the 9,200 jobs at its plant in the Netherlands, sparking a furious reaction from union leaders. Tata blamed weak demand in Europe and global trade tensions, as US President Donald Trump’s punishing tariffs on dozens of countries — including European Union member states — took effect. The tariffs are part of an intensifying trade war that has sparked fresh market panic.
“The challenging demand conditions in Europe driven by geo-political developments, trade and supply chain disruptions and escalating energy costs have affected the operating costs and financial performance,” said Tata, based in IJmuiden near Amsterdam. The cuts would fall on management and support roles, Tata added. “Tata Steel remains committed to ensuring that its Netherlands operation achieves their potential of being one of the most competitive, successful and efficient in Europe,” it said.
Dutch unions condemned the decision at the plant, which employs 9,200 workers. In all, Tata employs 11,500 people in The Netherlands. “This was a bolt out of the blue,” said Hans Korver, a negotiator with De Unie, a union that represents mainly white-collar employees at the plant. “We were particularly surprised by the scale of the cuts,” he told AFP.
The nation’s largest umbrella union federation FNV said it “did not understand” Tata’s restructuring plan. “Even now there are no detailed plans. The only thing created now is chaos,” it said in a statement. Tata, in its statement, said “over the following weeks, an effective and comprehensive consultation process will be run on the proposed changes”. But the FNV said it would be discussing the announcement with its members on Monday to decide on further steps, with strike action “not excluded”.
Tata Steel in November 2023 announced it was scrapping 800 jobs, but in reality, few jobs were slashed after the announcement. The plant has been facing hefty fines because of harmful emissions in the area. Dutch residents and the health authorities have accused it of being the main source of air, soil, and water pollution in the area and of causing illnesses. A pollution watchdog last week gave Tata a few more weeks to ensure that emissions complied with legal norms or face fines running into millions of euros, Dutch media reports said.
Tata, in its statement Wednesday, said it was working towards more environmentally friendly and sustainable methods, such as changing from old blast furnaces to electric arc furnaces. It planned to replace one blast furnace by the end of the decade, which it said would cut five million tonnes a year in carbon dioxide emissions.
© 2024 AFP
