Steelworkers' joy at huge reprieve with pay packets…

Steelworkers' joy at huge reprieve with pay packets set to increase for those who feared the axe

Steelworkers whose jobs have been saved despite the Scunthorpe coke oven closures going ahead look set to earn more as they move into other areas of the business.

The potential pay boom for the 250-strong team put through the redundancy process has been revealed as site multi-union chair Paul McBean told of the delight at a monumental reprieve. He delivered the news of the successful negotiations with British Steel bosses at two meetings with shift-working staff at the town’s Redbourn Club yesterday.

Mr McBean, who has represented employees through two business sales and the start of liquidation proceedings in recent years, stepped up again following February’s proposal. It was made in the face of global economic pressures and soaring energy and environmental costs, and followed weeks of speculation over job losses.

“These are people with families and mortgages, and when I first met with them they were devastated, and they were all looking to me,” Mr McBean said. “It puts a lot of pressure on your shoulders, but we got it over the line, and the difference between meeting them in the first place and meeting yesterday was unbelievable.”

“The terms and conditions won’t change, and pay will rise in a lot of cases. The coke ovens were one of the lowest paid areas, so wherever they go, the majority - it not all - will be on higher pay, and that pleased them even more.”

February’s announcement had 260 of 330 affected staff facing compulsory redundancy, after bills for energy and carbon increased by £190 million in the previous 12 months.

The coming months will see the closure, with a switch to importing the coke used in the steelmaking process, rather than making it.

A panoramic view of British Steel's Scunthorpe works. (Danny Lawson / PA)

Independent expertise has also backed up the reasons for the move in the mind of the union boss, with the coke ovens having been described as reaching the end of their operational life. Initial concerns over losing complete steel-making autonomy in the face of global conflicts and trade pressures had been highlighted.

Mr McBean said: “When we had the first consultation meeting, it started out with everyone facing hard redundancy on the coke ovens, with it shutting. Our first call was not to shut, but we brought in our own experts, Syndex, and they could see the reasoning to close the coke ovens with the carbon prices that could be saved.

“The next red line was no hard redundancies. It wasn’t liked, but eventually we got there, and in the end they agreed, and everyone who requires a job can have one as we are that short around the works.

“All my works representatives were telling me they were desperate for manning, and there has been over £1 million a month paid in overtime - over 100 people a month breaking the Working Time Directive - so we knew there was space.”

Employees can opt out of the legislative framework around a 48-hour week for a certain period or indefinitely, and Mr McBean said the evidence presented formed the basis of the argument against the redundancies, leading to the acceptance this week. That paved the way for the unions to withdraw the objection to the coke ovens closure.

“We held the two meetings yesterday at the Redbourn Club and they all left as very happy people," Mr McBean said. "Once again we have got over the line - though I’m not sure how many times I can do it!”

He is now working with British Steel and the government on negotiations over wider support on the decarbonisation journey.

“We never stopped dealing with the government and BEIS officials. I think Jingye pulled out slightly, but they are back in and hopefully we will end up with more good news.”

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