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Unite Calls for Policy Overhaul to Safeguard UK Steel Industry Amid Global Tariff Threats

Synopsis: Unite, the UK's largest union, urges the government to protect the UK steel industry by transforming public procurement rules. By classifying steel as "critical national infrastructure," the union believes the UK can secure its steel sector, create jobs, and foster growth while ensuring fair competition in the global market.
Tuesday, February 11, 2025
UNITE
Source : ContentFactory

Unite's Strong Call for UK Steel Industry Protection Amid Global Tariff Concerns

As steel tariffs continue to rise on the global stage, Unite, the UK’s largest trade union, has doubled down on its call for a transformative shift in how the UK protects its steel industry. The union is urging the UK government to introduce legal reforms that prioritize UK-produced steel in public sector procurement. This proposed shift is seen as vital in ensuring the long-term survival and competitiveness of the UK steel industry, which faces increasing pressures from unfair global competition and tariffs.

The Case for Steel as Critical National Infrastructure

Sharon Graham, the General Secretary of Unite, pointed to a recent threat from former U.S. President Donald Trump's steel tariffs as a wake-up call for the UK government. Graham emphasized that the UK should follow the example set by the U.S., which designates its steel industry as critical national infrastructure. This classification provides a robust legal foundation for the protection of domestic steel production, ensuring it remains integral to national security, economic stability, and the defense sector.

By adopting a similar approach, the UK can guarantee that steel produced within the country is prioritized for use in public sector projects, such as infrastructure, defense, and government-funded construction. Graham argues that this move would not only protect jobs but also stimulate growth and innovation within the UK steel sector.

Economic and Security Implications

The rationale behind the proposal is grounded in both economic and security concerns. According to Unite, steel production is a cornerstone of the UK's industrial infrastructure, with direct implications for national security. By relying on domestic steel for critical infrastructure, the UK can reduce its vulnerability to external market disruptions, including those caused by tariffs, trade wars, or shifts in global supply chains.

Furthermore, Graham stressed that such reforms could pave the way for the UK to become a leading player in the production of green steel, which is essential for meeting the country’s climate goals. Green steel, which is produced with minimal environmental impact, could provide a competitive edge in a world increasingly focused on sustainability and reducing carbon emissions.

Public Procurement as a Catalyst for Growth

Unite advocates for a legal framework that mandates the use of UK-produced steel in all public sector procurement where possible. The union believes that this approach would not only shield the UK steel industry from unfair competition but would also create jobs, boost production, and enhance overall economic growth. By securing a domestic market for UK steel, the government can support the transition to a greener, more sustainable manufacturing sector, ensuring that the steel industry remains viable in the future.

This proposal could also spark significant innovation in the steel sector, as it would encourage investment in cleaner, more efficient production methods. With the demand for environmentally friendly steel on the rise, this strategy would ensure that UK manufacturers remain at the forefront of the global steel industry.

Unite's Vision for a Resilient Steel Industry

The union’s call for change comes amid rising concerns about global competition and external economic pressures. By redesignating steel as a “critical national infrastructure,” Unite believes the UK government would be taking a proactive step in safeguarding not only the steel industry but also the broader industrial economy.

This change could protect thousands of jobs across the steel sector, from production to distribution, while allowing the UK to reduce its dependency on foreign steel. By fostering a competitive domestic market, the UK could strengthen its manufacturing capabilities and improve its position in the global economy.

In summary, Unite's call for a fundamental change in how the UK treats its steel industry highlights the need for a more strategic approach to procurement and national security. By implementing these reforms, the UK can ensure a future where its steel industry thrives, contributing to job creation, economic resilience, and sustainability in the long term.