Liberty Steel: Workers in Sheffield and Rotherham in uproar after wages go unpaid

Employees at Liberty Steel in Stocksbridge and Rotherham received a message stating wages would not arrive until Monday due to ‘unforeseen timing issues’.

A second says pension payments for September are delayed due to a change in bank account. No new date for payment is given.

The unprecedented delay comes as most of the workforce at both sites is on furlough due to a lack of orders.

Several Liberty workers have contacted The Star.

One said: “The employees have been told today there is a delay in wages. No pension has been paid into our accounts although money has been taken from wages.

“No contractors have been paid and we are being chased by companies for non-payment.”

Another said they had been furloughed since early September, along with hundreds of others.

He added: “Rotherham has not made anything for months and Stocksbridge is doing small amounts of high value work for the likes of Rolls Royce and Safran.”

Liberty operates an electric arc steel-making furnace at its site at Aldwarke in Rotherham and a rolling and finishing plant at Stocksbridge in Sheffield.

Alun Davies, Community Union national officer for steel, said the delay in paying wages was “totally unacceptable” and they had called a meeting with Sanjeev Gupta, CEO and chairman of GFG Alliance - which owns Liberty - and Jeff Kabel, Liberty chief transformation officer.

He added: "Since the collapse of Greensill Capital, Community has worked with and supported the company, even when the deadlines for refinancing were missed. However, over the last few days, we have been informed that pension contributions have not been paid on time, and then to add insult to injury, salaries will be paid late.

"This is totally unacceptable, so this morning we have reiterated our position to the company.

"We expect all workers to be paid before Monday, and any late payment charges to be covered by the company. In addition, we will not tolerate any further late payments of wages or pensions.

"Furthermore, Community has called for an urgent meeting with Sanjeev Gupta and Jeff Kabel to understand when normality will return for our members regarding the above issues, as well as being requested to go on short-term working.

"Our message is simple. We will not tolerate this happening again."

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A Liberty Steel spokesperson said: “There has been a delay in salaries arriving into Speciality Steel UK colleagues’ bank accounts this month. 

“Funding is secured for salaries and is being processed as an utmost priority. We regret any inconvenience this causes colleagues.”

The business had sought to preserve jobs in the face of a “severe market downturn,” they added.

“Despite these challenges, Liberty has sought to preserve jobs and is focused on delivering profitable and sustainable production where viable, and trading intelligently to maintain cash flows.

“We are committed to battle through this difficult time for the industry to shape a stronger and more efficient business.

“Our Speciality Steel operations in south Yorkshire are focused on lower carbon emissions electric arc furnace-based production supplying strategic aerospace, defence, and energy customers.

“The business has achieved major improvement in performance over the last 18 months by focusing on high-value specialist products, securing key customers’ support and taking steps to cut fixed costs and idle some unviable operations. It has been supported by significant injections of shareholder capital.”

Earlier this month the Financial Times reported Sanjeev Gupta was being prosecuted by Companies House for failing to file accounts for 76 companies listed in Britain.

In 2021, GFG Alliance was left in turmoil following the collapse of lender Greensill Capital.

In 2022, Liberty faced an HMRC winding up petition over unpaid debts. It was later dropped after discussions with the tax authority, creditors and lenders.