Aberavon MS David Rees warned that Tata Steel’s plans for an “elongated festive shutdown” at three Welsh sites would leave families struggling at the worst possible time of year.
The hot mill in Port Talbot, along with production lines in Llanwern and Trostre, are all expected to be affected.
‘Disastrous for communities’
Speaking during Senedd questions on Tuesday (15 October), Mr Rees said workers had been told to expect just 65% of their basic salary during the shutdown.
“This is new,” he said. “Normally in furloughs and shutdowns, staff get their normal pay. This would see steelworkers losing income at a time of year when families need that money most. It’s Christmas time… so it’s disastrous for the communities.”
The Aberavon MS, who chairs the Senedd’s cross‑party group on steel, said confidence in Tata was “rock bottom” following the closure of Port Talbot’s blast furnaces earlier this year, which cost more than 2,000 jobs.
Wider pressures on steel
Mr Rees also pointed to the wider storm clouds gathering over the industry. He warned that 50% tariffs imposed by the United States, combined with looming EU moves to cut import quotas, were squeezing Welsh steelmakers from both sides. At the same time, cheap imports from countries such as China and Vietnam were being “dumped” into UK markets, undercutting domestic production.
These concerns echo issues Swansea Bay News has reported on in recent months. Local Labour representatives have pressed the UK Government to raise tariffs to protect the industry, while Plaid Cymru has argued that re-joining the single market would shield Welsh steel from EU restrictions. Earlier this year, Tata itself confirmed it would halt production at Port Talbot and Llanelli over Christmas amid weak demand, and fears have grown since the EU announced its 50% tariff plans. Alongside these challenges, Tata has also been pushing ahead with its £1.25bn “green steel” project in Port Talbot, which includes transitioning to an electric‑arc furnace.
Calls for action
Mr Rees urged both the Welsh and UK Governments to come forward with a clear strategy to protect the industry.
“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,” he said.
Welsh Government response
Deputy economy minister Jack Sargeant said Welsh ministers were in regular talks with Tata and trade unions. He confirmed Economy Secretary Rebecca Evans had met UK Government colleagues over the weekend to discuss the proposed pause and the impact of EU quota changes.
A meeting of the Tata transition board is scheduled for Wednesday (16 October).
Mr Sargeant said the Welsh Government was working with Westminster on a steel strategy but could not yet provide a timeline.
Cross‑party concern
Plaid Cymru’s Luke Fletcher echoed warnings that the 65% pay packets would be “catastrophic” for families in South Wales West, adding that contractors were already being served notice.
Conservative MS Samuel Kurtz called on ministers to hold Tata’s “feet to the fire” to ensure the company delivers on its promise to transition to an electric‑arc furnace in Port Talbot.
‘Future of Wales’
Mr Rees concluded: “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.”
