FEARS that the steel industry in Scotland is coming to an end have been heightened amid reports that one of the biggest industry players is to trigger a wave of job losses. 

An announcement is expected early next week on the future of plants at Dalzell in Motherwell, Clydebridge in Cambuslang and Scunthorpe in North Lincolnshire. It is understood about 1,200 posts are affected, including up to 400 in Scotland. 

Steel giant Tata said it would not comment on “rumour and speculation”, but an announcement is expected on Tuesday. Any job losses would be a major blow to the beleaguered industry so soon after steelmaking ended at the Redcar plant on Teesside.

Former first minister Alex Salmond called on the Prime Minister to act on what is a “very serious situation” while Scottish Labour leader Kezia Dugdale said the lay-offs could signal the end of the industry. 

She said: “Reports of job losses in our steel industry are very worrying. I have been in touch with the trade unions today about this and have been assured that they will be working hard over the weekend to secure as many jobs as possible.

News of the cuts emerged as the Government held a summit in Rotherham to discuss the crisis gripping the industry amid plunging prices and cheap imports.

Unions, business leaders and ministers attended the summit in Rotherham, which was overshadowed by the latest news.
Emerging from the meeting,  Karl Koehler, Tata Steel’s chief executive of European operations, would not confirm the job losses in Scotland and Scunthorpe, saying: “When we have something to announce we will do it in the appropriate fashion, as you know.”

Roy Rickhuss, the general secretary of the Community union was seeking further talks with Tata Steel in a bid to “understand the full detail, examine alternatives that may safeguard jobs and uphold our principle of opposing compulsory redundancies”.

He said: “This is yet another blow to our steel communities and shows the precarious state of the UK steel industry and emphasises the need for Government action – which Community and the employers have been calling for today.

“We will also be seeking a meeting with the Scottish Government as a matter of urgency to discuss what support they can offer to Tata Steel’s Scottish steel mills at Dalzell and Clydebridge.’’

Unite assistant general secretary Tony Burke said: “Time is ticking on the UK’s steel industry and the news of yet more job losses should jolt the Government out of its laissez faire approach to this vital part of the UK economy.” 

Mr Salmond said David Cameron must intervene to save the UK steel industry.

He said: “We have to have a government that’s prepared to make an industrial intervention because the alternative is to have no steel industry.

“I remember last year that David Cameron didn’t want to be remembered as the prime minister, who saw the end of the United Kingdom through Scottish independence. Does he want to be remembered as the prime minister under whose watch the UK steel industry disappeared altogether?” 

A Scottish Government spokeswoman said: “Since last year, when Tata Steel first announced the potential sale of its long products division, the Scottish Government and its agencies have been in constant contact with both Tata Steel and with the trade unions. In the unfortunate event of any redundancies, our Partnership Action for Continuing Employment (Pace), stands ready to offer support for affected employees if required.”