LONDON, Feb 2 (Reuters) - The British government is
disappointed privately-owned British Steel is looking to cut
jobs at its plant in northern England while discussions are
still ongoing about a state-funded support package, junior
business minister Nusrat Ghani said on Thursday.
The local lawmaker for the steelworks in Scunthorpe,
Conservative Holly Mumby-Croft, told parliament British Steel's
Chinese owner Jingye had held discussions with trade unions on
Wednesday about cutting around 800 jobs.
"I understand this must be a very concerning time for
British Steel employees following discussions which took place
between the company and union representatives yesterday," Ghani,
Minister for Industry and Investment Security, said.
"It is very disappointing that British Steel has chosen to
take this step for its employees while negotiations with
government are ongoing."
British Steel, which was bought out of insolvency by Jingye
in 2020, said it had discussed with the trade unions the
challenges it faces, including an economic slowdown, rising
inflation and "exceptionally" high energy prices.
"We are reluctantly having to consider cost cutting in light
of the global recession and increased costs. We have discussed
this in preliminary talks with the trade unions," a spokesman
said.
Last month, Sky News reported the government was close to
agreeing a 300 million pound ($367 million) funding package for
British Steel, which would likely be conditional on investment
from Jingye and commitments on job retention.
Ghani said the government had put forward a "generous
package of support" and was working with the company to find a
solution that protects jobs.
($1 = 0.8123 pounds)
(Reporting by Kylie MacLellan and Muvija M; editing by William
James)
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