Recommendation 4

The Department engaged effectively with the local Council and trade unions at the start of the intervention, but it is not clear how it will involve them in shaping the future of the company and the steel sector. The Department engaged the three unions that represent steel workers and North Lincolnshire Council throughout the intervention and maintained constructive working relationships despite the ongoing uncertainty. The unions and the local Council made a strong case to us for continued involvement as government considers its options for British Steel. They articulated practical ideas for the future of the company and the Scunthorpe site, including attracting new investment, supporting a managed workforce transition and reducing the risk of significant redundancies through natural attrition. It was not clear how the Department intends to draw on this expertise as it develops plans for the future of the company. We expect the Department to continue to involve these key stakeholders in a meaningful way so that it can protect jobs, retain skills and maximise the long-term benefits of the Scunthorpe site. recommendation The Department’s plans for British Steel should also make clear: a. how it will ensure formal and ongoing involvement of workers, unions and local stakeholders in decisions about the future of British Steel and the UK steel sector, including formal consultation mechanisms, and options for representation in governance structures, including the new Board. b. How it will work with North Lincolnshire Council and other stakeholders to develop an assessment of options for the future of the Scunthorpe site.