Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Tata Steel Europe has requested a discussion with employees to end the IJmuiden plant’s three-day strike, which is currently underway to protest the additional 1,000 planned job cuts. 


Employees at the Dutch Tata Steel plant organized additional strike actions and stopped work at the facility on late Sunday evening, according to the Netherlands Trade Union Confederation (FNV). Production has completely stopped for packaging steel at the facility, which affects the cold rolling mill, pickling, annealing furnace, tin lines, continuous annealing lines Nos. 11 and 12, and packaging.


The overall demand for steel has fallen significantly over the past few months due to COVID-19 related lockdowns. However, demand for packaging steel has remained consistently high and consumers are now awaiting the material. The holdup is attributed to the major interruption of output, which employees believe will demonstrate the strike’s significance, according to Roel Berghuis, director, FNV.


Tata Steel Europe is working towards addressing issues with all members, including the Netherlands and UK unions, according to reports. The steelmaker and FNV are expected to hold useful discussions within the next few days.


Moreover, the company’s financial performance will face continued pressure due to effects from dropping steel demand caused by COVID-19 In addition to the impacts from a loss in packaging steel production. 


FNV along with other labor unions collectively represent over 50pc of Tata’s 9,000 employees in IJmuiden. Previously, IJmuiden plant employees insisted on a guarantee from the company that its strategic plan would not cause dismissals. The current strike is a first in 28 years for Tata’s Ijmuiden employees.

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