Published on 18/05/2020 4:46:27 PM | Source: Reuters

Tata Steel Dutch workers groups blast plans for job cuts

Posted in Top Stories| #Tata Steel Ltd #World Market

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AMSTERDAM  - Dutch labour unions and the works council of Tata Steel in the Netherlands on Monday disclosed that the chairman of the subsidiary has been dismissed and vowed to fight against 1,000 proposed job cuts.

In a statement, the company's works council said that Theo Henrar has been dismissed in what they described as an "incomprehensible and ill-considered" decision made in the interests of Tata Steel UK at the expense of the Dutch arm.

"Both the shareholders in India and the European leadership of Tata Steel have been failing to solve problems in Britain for years," it said. "Billions of pounds and euros have not been able to make Tata Steel UK profitable."

Tata Steel employs around 9,000 people at IJmuiden, about 25 km (15.5 miles) northwest of Amsterdam.

Labour Union FNV Steel said that Henrar had advocated to preserve the Dutch operations.

"The owners of Tata Steel in India are keen to downsize IJmuiden," said Roel Berghuis in a statement. "Henrar had been able to convince them time after time of the large importance of the subsidiary for Tata Steel and the Netherlands."

Tata Steel Europe began talks with workers in November over a "transformation programme" that would led to 3,000 job cuts, following a decision by European Union competition regulators to block a joint venture with Germany’s Thyssenkrupp.

In April the company said it had delayed reorganisation plans until after July 1, due to the coronavirus pandemic.

Steelmaking operations around Europe are operating at reduced capacity due to a drop in demand from the auto industry.

(Reporting by Toby Sterling, editing by Louise Heavens)