Will Tata Stee gain or lose by changing the government in Britain?

The new Labor government in Britain has signaled that it will focus on preventing job losses at Tata Steel. According to the report, the new government led by Keir Starmer is in talks with the company. Tata, Britain's biggest steelmaker, has begun shutting down one carbon-intensive blast furnace, with another likely to close in September, resulting in the loss of 2,800 jobs in Port Talbot, south Wales. According to a Reuters report, the new government is also supporting the company to transition to lower-carbon technologies.

The new government will need to sign off on a 500 million pound ($635 million) aid package the previous government agreed to with Tata Steel to help it build lower-carbon electric arc furnaces, but the union is hoping for a better deal from Tata. which prevents unwanted layoffs.

Government focus on job guarantee

"We see this as a big priority," said government minister Jonathan Reynolds, according to a report. I am going to make sure that job guarantees are part of the negotiations that we are having.' The government's focus came after workers postponed plans to strike following a warning from the country's largest steel producer. Tata Steel had indicated that both its furnaces would already be shut down if the strike happened.

According to the report, around 1,500 workers employed at the plant sites, who were banned from overtime on June 17, were also to go on strike from July 8. The union decided to postpone its strike after the company confirmed it was opening talks about future investments in its operations. After this discussion, the strike has been postponed.