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Steelworkers are facing “catastrophic” pay cuts of more than a third over Christmas due to an extended shutdown at three Tata Steel sites in Wales, the Senedd has heard.

David Rees, who chairs the Senedd’s cross-party group on steel, warned the 65% pay packets would be disastrous for families still reeling from thousands of job losses.

The Aberavon Senedd Member criticised plans for an “elongated festive shutdown” for the hot mill in Port Talbot as well as production lines in Llanwern and Trostre.

The Labour politician said: “This would also see steelworkers losing a large proportion of their income. There were talks of a 65% basic salary being paid… that’s not happened normally in furloughs and shutdowns, they get their normal pay.

“This is new… this is actually seeing staff losing income at a time of year when families need that money. It’s Christmas time… so it’s disastrous for the communities.”

Mr Rees warned of the cumulative impact of 50% US tariffs, EU plans to cut import quotas and steel being dumped in UK markets from China or Vietnam.

‘Rock bottom’

During today’s (October 15) topical questions in the Senedd, he said: “With that in mind, I suppose I want to know exactly what’s going on because of the anxiety families are facing, having suffered over 2,000 job losses when the blast furnaces shut down.

“The faith in Tata at the moment is rock bottom and they need reassurances that the Welsh Government is taking action to support the industry and to support them in particular.”

Mr Rees told the Senedd: “The quotas need to be addressed, the tariffs need to be raised and we need to take action to stop outside steel taking the marketplace, otherwise we’re going to see more and more of this happening and it’s going to decimate our industries.

“I expect both governments to actually come up with a strategy and we’re waiting for that, minister, do you have any idea when that strategy might take place?”

Mr Rees stressed: “The future of steel is crucial to the future of Wales, it’s the largest and longest foundational industry still here – and we cannot let it go.”

Recognising his Labour colleague’s concerns, Jack Sargeant, for the Welsh Government, told the Senedd that ministers and officials have regular talks with Tata and trade unions.

‘Catastrophic’

He said Rebecca Evans, Wales’ economy secretary, met UK Government colleagues on the weekend to discuss the proposed pause and the impact of EU plans to cut import quotas.

The deputy economy minister, who is responsible for fair work in Wales, also highlighted a meeting of the Tata transition board scheduled to take place tomorrow (October 16).

Mr Sargeant said the Welsh Government is engaged with Westminster on the steel strategy but he did not have a timeline to hand, committing to following up in writing.

Luke Fletcher, Plaid Cymru’s shadow economy secretary, warned the 65% pay packets will be “catastrophic” for many of the families he represents in the South Wales West region.

Cautioning that confidence in the steel industry is at an all-time low, he said: “Not only that but I’m also receiving information that contractors are now being served notice by their companies because of this news.”

Samuel Kurtz, for the Conservatives, urged ministers to hold Tata Steel’s “feet to the fire” to ensure the company delivers on plans to transition to an electric-arc furnace in Port Talbot.