Lib Dems Challenge Welsh Secretary on Rotten Tata Transition Deal

• Welsh Liberal Democrat MP for Brecon, Radnor and Cwm Tawe David Chadwick, has challenged the Welsh Labour Secretary of State for Wales Jo Stevens, today in Parliament.
  
   
• Labour has consistently defended the way workers in Port Talbot were treated compared to those in Scunthorpe by claiming the deal they struck with Tata was better than the one previously signed by the Conservatives.
  
   
• However, David Chadwick today highlighted several problems raised by workers in Port Talbot: those with service over 25 years not having that service recognised in their redundancy package, very low take-up of retraining options, a requirement for workers to forfeit the enhanced redundancy payout in order to access retraining. 

The Welsh Liberal Democrats have again criticised Labour in Parliament for its treatment of Port Talbot steelworkers, highlighting several problems with the transition deal struck with Tata Steel. 

Since the news that British Steel in Scunthorpe was to be nationalised, Labour has consistently defended its position not to do the same in Port Talbot, arguing they were able to secure an improved redundancy and training package for the almost 3,000 people being made redundant. 

However, since the announcement of the deal last summer, numerous problems have been reported by those facing redundancy, including: 

• Employees with 40+ years of service, who are currently on job share contracts, have had their redundancy figures based on their part-time contract. Those who have asked to return to full-time roles have been refused.
  
   
• Employees not being provided clear finishing dates, creating difficulties securing new employment, or if they want to start new employment imminently, they need to forfeit the voluntary redundancy package.
  
   
• Many staff left the site without receiving payouts, saving the company millions of pounds in order to start in new jobs instead of being left in limbo waiting for a finish date. 

• In February 2025, whistleblowers reported to Nation.Cymru, that just three ex-employees had accessed the Employment and Skills Flexible Fund retraining scheme. 
  
   
• One major problem cited was that if an employee stays in the retraining scheme longer than a month, they will not receive the full enhanced redundancy payment.
  
   
• The enhanced redundancy package comprises 2.8 weeks’ pay for every year of service up to 25 years’ service. It also includes a minimum payment of £15,000 plus a possible £5,000 ex gratia payment dependent on attendance. The standard redundancy package comprises 2.1 weeks’ pay for every year of service.
   
• When questioned by Nation.Cymru, Tata did not deny that only three people had accessed the retraining scheme.

Jo Stevens was not able to answer the specific questions asked by David Chadwick. 

The UK government has previously said it could claw back its investment should Tata renege on the deal.

Commenting, Welsh Liberal Democrat Westminster Spokesperson David Chadwick said:

“Since this Labour Government announced it was acting to save jobs in Scunthorpe, but not Port Talbot, Labour has repeatedly claimed this is because they secured a good deal for workers losing their jobs at Tata. The conversations I’ve had with workers since directly contradict this claim. 

“With those workers having served over 25 years not having that service recognised, and only a handful of people accessing retraining courses due to the threat of receiving a worse redundancy package, this sounds like a rotten deal to me.  

“The way workers and the wider community in Port Talbot have been treated by this new Labour Government and the previous Conservative Government is appalling. The Welsh Liberal Democrats will continue to highlight their failures and fight for immediate investments to replace the jobs that have been lost as a result of this mismanagement.”

ENDS