Unite Demands Public Ownership for British Steel: A Crucial Step to Protect Jobs and the National Economy
On April 9, 2025, Unite, the UK and Ireland’s largest manufacturing union, voiced strong support for the nationalization of British Steel if the struggling steelmaker cannot come to an agreement with its Chinese owners, Jingye Group, and the UK government. Unite general secretary Sharon Graham stated that while ongoing discussions with both parties are underway, the government must step in to take British Steel into public control if a private deal cannot be finalized. The call to bring British Steel under public ownership has grown more urgent as the steelmaker faces mounting financial difficulties, with the risk of job losses and economic disruption hanging over the company’s future.
The Importance of British Steel to the UK Economy
British Steel, which has operations in Scunthorpe, is not just any steel producer—it is a strategically important player in the UK’s industrial landscape. The company supplies vital products to other UK steelmakers and is responsible for producing 95% of the country’s rail tracks. With more than 4,000 jobs at risk directly in the steelmaking facilities, and an additional 20,000 jobs within the supply chain, the potential collapse of British Steel would have catastrophic consequences for the broader UK economy.
Unite's Sharon Graham emphasized that British Steel’s survival is crucial to the success of any long-term UK industrial strategy. The steelmaker’s collapse could lead to a significant economic downturn, impacting not just the immediate workforce but also communities that depend on the company’s operations for their livelihood.
“We cannot simply leave British Steel to the market. It is a national asset supporting UK Plc,” Graham said. She added that the government must step in if negotiations fail to preserve the company and its workforce. “If a deal cannot be struck to secure the long-term future of British Steel under private ownership, the government must bring it under public control in the national interest.”
Government Investment and Long-Term Job Guarantees
In response to growing concerns, the UK government has engaged in discussions with British Steel and Unite, with the government offering substantial investment in the company. These discussions include guarantees for long-term job security for the workforce, which has been a significant concern for employees and union representatives alike. However, Graham made it clear that any investment made by the government should come with firm commitments from British Steel regarding the future of its workers and the plant.
“Anything less would be a complete misuse of taxpayers' money,” Graham argued. She stressed that for the British Steel deal to be considered a success, there must be assurances that the company’s future is secure and that workers are protected from any potential closures or job cuts.
Addressing the Underlying Issues of the Steel Sector
Beyond the immediate crisis facing British Steel, Unite has also called on the government to tackle the broader issues affecting the UK steel industry. One of the biggest challenges facing British Steel and its competitors is the high cost of energy. Steelmakers in the UK are currently paying far more for electricity than their counterparts in France and Germany, creating an uneven playing field and hindering the industry’s competitiveness.
Unite's Sharon Graham emphasized the need for the government to address these disparities, saying, “High energy costs are one of the root causes of the struggles faced by British Steel and other manufacturers in the UK. The government must act to reduce these costs and ensure that UK steelmakers can compete on a level playing field with their European counterparts.”
In addition to addressing energy costs, Graham also called for the UK government to use its purchasing power to support British Steel. Specifically, she urged ministers to prioritize UK-made steel in major national infrastructure projects, helping to ensure the long-term survival and growth of the domestic steel industry.
“We need a joined-up industrial strategy that supports UK manufacturing. The government must put UK steel at the heart of major infrastructure projects, helping to secure demand for British-made steel and ensure the industry can thrive,” she said.
The Political Implications of Nationalization
The proposal to bring British Steel under public ownership is not without its political ramifications. While the idea of nationalizing an important industry like steel may appeal to unions and those concerned with job security, it is likely to be controversial within the broader political landscape. Nationalization of British Steel would represent a significant shift in government policy and raise questions about the role of the state in the private sector.
However, for Unite and its members, the priority remains the preservation of jobs and the stability of the UK’s industrial sector. As Sharon Graham put it, “We cannot allow this vital part of the UK’s industrial base to collapse. British Steel is too important to be left to the market.”
Key Takeaways:
• Unite Calls for Nationalization: Unite, the UK’s largest manufacturing union, is urging the government to take British Steel into public ownership if a deal cannot be struck with its Chinese owners to secure its future.
• Strategically Important Business: British Steel provides 95% of the UK’s rail tracks and sustains over 4,000 direct jobs and 20,000 jobs in the supply chain, making its survival vital for the national economy.
• Government Investment and Job Guarantees: The UK government has made an offer to invest heavily in British Steel, but this offer must come with long-term job guarantees to ensure the company’s future and protect workers.
• High Energy Costs Impacting Competitiveness: The steel industry is struggling with high energy costs, which make UK steelmakers less competitive than their European counterparts. Unite calls for government action to reduce these costs.
• Support for UK Steel in Infrastructure Projects: Unite advocates for a national industrial strategy that includes using the government’s purchasing power to ensure UK steel is prioritized in major infrastructure projects.
• National Asset for UK Plc: British Steel is viewed by Unite as a national asset that is critical to the success of any UK industrial strategy and must not be allowed to fail.
• Political Debate on Nationalization: The call for nationalization of British Steel is likely to spark political debate about the role of the state in the private sector, with significant implications for the future of UK manufacturing.
