The Chinese company buying British Steel has reached an agreement with trade unions over its rescue of the failed manufacturer, as it races to wrap up a takeover by the end of next month.
Executives from Jingye and union officials have arrived at an understanding on new employment contracts for workers at the collapsed company and other aspects of a turnround plan, according to three people with knowledge of the discussions.
It brings the Chinese industrial conglomerate a step closer to completing an acquisition of British Steel, whose 5,000 workers based mainly at the Scunthorpe plant have waited in angst since the steelmaker collapsed in May. The company has been run in a liquidation process by the official receiver, with support from a taxpayer-funded indemnity.
Under Jingye’s plans to put British Steel back on track, some workers will be given the option of voluntary redundancy, added two of the people. Unions have previously expressed concerns over the prospect of job cuts.
Jingye, which is chaired by former Chinese Communist party official Li Ganpo, signed a deal to buy British Steel in November and outlined proposals to invest £1.2bn into the manufacturer, ramp up production and slash costs. It is now aiming to complete the transaction around February 27, said two people.
Unions are set to write to their members outlining the agreement which employees will be free to accept or reject. Jingye must also obtain approval from authorities in France, where British Steel operates a factory that makes metal tracks for railways.
A spokesperson for the trade union Community said: “We will communicate with our members first about the talks with Jingye.” GMB could not be reached for comment. Unite and Jingye declined to comment, as did the official receiver who is overseeing the liquidation process.
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January 23, 2020 at 10:33PM
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British Steel’s Chinese buyer strikes deal with unions - Financial Times
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