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1700 jobs to go at the steel plant
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By (user no longer on site) OP
over a year ago
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Leaders have urged to intervene of the huge job losses as 1700 people have made redundant in Teesside and its been described as devastating news and a big chunk of uk's economy. Do you recon more can be done to save the jobs and what do you recon of the big news? |
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By (user no longer on site)
over a year ago
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Had a feeling nothing good would come of it when i heard about it a week ago, as consumers we want cheap goods making countries with cheap labour tax rates etc more competetive, if we limited the amount of imports and paid more for the goods we consume then it would keep more people in work but then the wages would need to be higher to afford the goods and so a viscous circle  |
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I'd rather the government subsidised the cost rather than spending what they might have spent on subsidies on dole money and benefits and such. A little inefficiency in the system can have a positive effect on jobs and peoples lives. |
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By (user no longer on site)
over a year ago
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"I'd rather the government subsidised the cost rather than spending what they might have spent on subsidies on dole money and benefits and such. A little inefficiency in the system can have a positive effect on jobs and peoples lives. "
A nice sentiment. No one wants to see people lose their jobs. But how long would those subsidies be paid? Indefinitely? The losses being made there are huge. I haven't made the calculation but I suspect any subsidy would soon outstrip the bill for benefits. |
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"I'd rather the government subsidised the cost rather than spending what they might have spent on subsidies on dole money and benefits and such. A little inefficiency in the system can have a positive effect on jobs and peoples lives.
A nice sentiment. No one wants to see people lose their jobs. But how long would those subsidies be paid? Indefinitely? The losses being made there are huge. I haven't made the calculation but I suspect any subsidy would soon outstrip the bill for benefits."
No idea - full employment isn't possible. |
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By (user no longer on site)
over a year ago
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Sad day for Teesside but makes you wonder where are they going to buy the steel from to make the French power station and Chinese rail networks over here?
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"I'd rather the government subsidised the cost rather than spending what they might have spent on subsidies on dole money and benefits and such. A little inefficiency in the system can have a positive effect on jobs and peoples lives. "
certainly in the short term to see if its a viable business probably after 'restructuring' or whatever its called but it may not be the best use of money long term.. |
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"Sad day for Teesside but makes you wonder where are they going to buy the steel from to make the French power station and Chinese rail networks over here?
"
China..
would not be surprised if that was part of any agreement signed last week by osborne.. |
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By (user no longer on site)
over a year ago
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"I'd rather the government subsidised the cost rather than spending what they might have spent on subsidies on dole money and benefits and such. A little inefficiency in the system can have a positive effect on jobs and peoples lives.
certainly in the short term to see if its a viable business probably after 'restructuring' or whatever its called but it may not be the best use of money long term.."
Although I have little to go on save for the news reports, I doubt any business would close if it believed it could make a profit. I haven't heard any arguments put forward to suggest that the plant was financially viable. |
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By *ax777Man
over a year ago
Not here |
I believe SSI has received over £100 million in grants from the UK Government, that's money that will never be seen again. The firing of the ovens took longer than originally anticipated and the company appeared to have cash flow problems from very early on. I'm not sure you will find a lot of sympathy amongst local suppliers. The workforce were only paid last week due to the government rushing through a tax rebate and insisting that the workforce be paid rather than the money going back to the parent company in Thailand. |
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By (user no longer on site)
over a year ago
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I think we could argue this and that about the world economic climate and government etc. What the sad thing is we are losing another massive employer in the north east of England. And 1,700 families in the area will be suffering tonight and possibly months and months to come. My heart goes out to them. |
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By *MaleMan
over a year ago
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If the UK powers that be wanted to they could reroute the supply chains for the UK steel demand to ensure it survives.
As for subsidies you'll find most countries subsidise such industries inside & outside competition laws.
The ££ impact of letting it go will far exceed the ££ of helping it along. |
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By (user no longer on site)
over a year ago
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"I'd rather the government subsidised the cost rather than spending what they might have spent on subsidies on dole money and benefits and such. A little inefficiency in the system can have a positive effect on jobs and peoples lives. "
EU rules I am afraid also prevent us from subsidising the cost. The government has already stated this. Even if it were possible, what about the unfair advantage that would give this factory over others in the country?
This plant was shut down in 2010 due to it being uneconomical. The Thai company that reopened it 2 years later spent millions of pounds to get it working again.
Sometimes, sad though it is, you do just have to accept that there is no happy solution. I wish the workers the best in their endeavours to secure different work. I do hope that retraining opportunities are given to them. |
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"it looks like industry in uk is rock bottom nearly everything you buy is china, no doubt steel goods made here will be from imported steel"
its already imported steel
most of the scrap is going abroad and brought back into the country via china the steel is much cheaper to import but the steel prices are sky high |
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By (user no longer on site)
over a year ago
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"I'd rather the government subsidised the cost rather than spending what they might have spent on subsidies on dole money and benefits and such. A little inefficiency in the system can have a positive effect on jobs and peoples lives.
certainly in the short term to see if its a viable business probably after 'restructuring' or whatever its called but it may not be the best use of money long term..
Although I have little to go on save for the news reports, I doubt any business would close if it believed it could make a profit. I haven't heard any arguments put forward to suggest that the plant was financially viable."
The price of steel means that they can't possibly make a profit  |
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"Leaders have urged to intervene of the huge job losses as 1700 people have made redundant in Teesside and its been described as devastating news and a big chunk of uk's economy. Do you recon more can be done to save the jobs and what do you recon of the big news?"
. It seems pointless keeping open a business that is not financially viable . We need to concentrate on the businnesses that we run successfully and forgot the non viable ones .
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By (user no longer on site)
over a year ago
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"I believe SSI has received over £100 million in grants from the UK Government, that's money that will never be seen again. The firing of the ovens took longer than originally anticipated and the company appeared to have cash flow problems from very early on. I'm not sure you will find a lot of sympathy amongst local suppliers. The workforce were only paid last week due to the government rushing through a tax rebate and insisting that the workforce be paid rather than the money going back to the parent company in Thailand."
Wasn't it about 10yrs ago that the plant was either shut down or in serious trouble back then?
Does that mean it's just not a viable company/manufacturer? ? |
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"Leaders have urged to intervene of the huge job losses as 1700 people have made redundant in Teesside and its been described as devastating news and a big chunk of uk's economy. Do you recon more can be done to save the jobs and what do you recon of the big news?. It seems pointless keeping open a business that is not financially viable . We need to concentrate on the businnesses that we run successfully and forgot the non viable ones . "
Harsh !
It's not just a business |
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By (user no longer on site)
over a year ago
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"I believe SSI has received over £100 million in grants from the UK Government, that's money that will never be seen again. The firing of the ovens took longer than originally anticipated and the company appeared to have cash flow problems from very early on. I'm not sure you will find a lot of sympathy amongst local suppliers. The workforce were only paid last week due to the government rushing through a tax rebate and insisting that the workforce be paid rather than the money going back to the parent company in Thailand.
Wasn't it about 10yrs ago that the plant was either shut down or in serious trouble back then?
Does that mean it's just not a viable company/manufacturer? ?"
As above, 2010, then sold to a Thai company which ploughed millions into it. |
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By (user no longer on site)
over a year ago
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Anyone ever bought Chinese steel spanners? I've had the snap in my hands, and nearly stabbed myself with them as a result. There is s reason Chinese steel is cheap...its crap. |
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By *ax777Man
over a year ago
Not here |
The Redcar plant was originally owned by British Steel, then Corus then Tata Steel, who mothballed the plant in 2010. SSI bought the plant in 2011 and operated it on a much reduced scale to the Corus days.
The business has made huge losses from day one and some suppliers have had difficulty in receiving timely payments, causing some to go out of business. Others have made the decision not to continue to supply the company as they could not afford the extended credit terms that SSI were taking....and this was before the price of steel dropped by nearly 50% to today's prices, which has massively increased SSI's problems.
Whilst it is very hard on the workers losing their jobs, this business is obviously not viable. I'm sure there are suppliers out there even now fearing for their future if the're not going to receive payment.
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By *MaleMan
over a year ago
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the mass bought china steel is terrible, as are it's alloys.
A few comments above stating if a its not viable etc.
Take the subsidies off the farms or the bailouts off the banks, in fact take them off everything. A few of the privatised ex nationalised companies come a begging to the govt. If they aint viable, close them too 
You will find much is not viable  |
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By (user no longer on site)
over a year ago
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"We're probably buying cheap steel from China"
And China is buying expensive steel from us.
Low costs steel isn't a game we can really play, however the likes of forgemasters etc a huge government grant/low cost loan to set them up with equipment so they could compete with Japan steel in the reactor vessal sector would be a brilliant idea
UK has a good reputation for steel and reactor design but we have to farm stuff out to Japan steel cause they're the only place with forges big enough |
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"full employment isn't possible.
It is, but the side effects are not good."
It isn't. Some people can't work and some people don't want to, therefore, having zero unemployment isn't possible. It's more realistic to aim for a range. |
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By (user no longer on site)
over a year ago
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"full employment isn't possible.
It is, but the side effects are not good.
It isn't. Some people can't work and some people don't want to, therefore, having zero unemployment isn't possible. It's more realistic to aim for a range. "
Could just shoot everyone who's unemployed :p
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"full employment isn't possible.
It is, but the side effects are not good.
It isn't. Some people can't work and some people don't want to, therefore, having zero unemployment isn't possible. It's more realistic to aim for a range.
Could just shoot everyone who's unemployed :p
"
and then when the folk employed to shoot them have shot them they'll be unemployed too so we can employ others (who will have to move jobs) to shoot them. Sound economics... |
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By *ax777Man
over a year ago
Not here |
"the mass bought china steel is terrible, as are it's alloys.
A few comments above stating if a its not viable etc.
Take the subsidies off the farms or the bailouts off the banks, in fact take them off everything. A few of the privatised ex nationalised companies come a begging to the govt. If they aint viable, close them too
You will find much is not viable "
The steel that SSI produced in Redcar was mainly for its parent company back in Thailand to be used in the production of cars etc not for the UK market. The parent company can now import steel from China much cheaper than its subsidiary can manufacture here in the UK.
Are you advocating that the British taxpayer should subsidise a Thai company? |
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By (user no longer on site)
over a year ago
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"full employment isn't possible.
It is, but the side effects are not good.
It isn't. Some people can't work and some people don't want to, therefore, having zero unemployment isn't possible. It's more realistic to aim for a range.
Could just shoot everyone who's unemployed :p
and then when the folk employed to shoot them have shot them they'll be unemployed too so we can employ others (who will have to move jobs) to shoot them. Sound economics... "
Nah you just do the shooting as overtime for someone already in a job :p |
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By (user no longer on site)
over a year ago
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No demand, China isn't buying and no one pays more than they must for steel. If we want to keep it we're going to have to subsidise it. For how long? And what is the number of jobs where we step in 1200, 800, 400, 1? Or are steel workers special.
For the record I remember that some industries used to be special, power (coal) steel, farming, they were called strategic b because if we went to war we needed them. So steel I'd be wary of losing. |
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"full employment isn't possible.
It is, but the side effects are not good.
It isn't. Some people can't work and some people don't want to, therefore, having zero unemployment isn't possible. It's more realistic to aim for a range.
Could just shoot everyone who's unemployed :p
and then when the folk employed to shoot them have shot them they'll be unemployed too so we can employ others (who will have to move jobs) to shoot them. Sound economics...
Nah you just do the shooting as overtime for someone already in a job :p"
what a nice human being you are saying this  |
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By (user no longer on site)
over a year ago
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Not a single mention of the huge subsidies being paid to the so called "private" owned rail companies.
More money paid out now its in private hands,than when it was state owned.
Then the huge white elephant that is HS2,paid for by tax payers,owned by private companies no doubt.
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