Steel union holds out strike threat if Tata fails to invest in UK

LONDON: Britain's leading steel union, Community, has warned Tata Group that unless it invested heavily in the future of Corus it will face widespread industrial action.

The threat comes as Ratan Rata, the Group's chairman, cautioned that there were no guarantees over job safety.

Community, formerly the Iron and Steel Trades Confederation, is particularly concerned about the future of the Port Talbot works in South Wales, where it believes investment of 200 million pounds in steel finishing capacity is needed to secure the plant's future.  More than 3,100 of Corus's 24,000 workforce at employed there.

A senior Community official told the Observer that the union is seeking an urgent meeting for assurances on future investment.

"Tata can invest in the future or it risks a serious industrial dispute in the UK. We are quite prepared to go to these lengths.  It needs to put 200 million pounds into Port Talbot. That's what it paid bankers for the advice on the deal. It's peanuts", he said.

Tata had last week edged out Brazilian group CSN to gain control of Corus in an auction that valued the Anglo-Dutch steelmaker at 6.7 billion pounds. Tata paid 608 a share, well above market expectations, having hiked its October last year's offer of 455 pence.