Trade unions call for urgent action as steel overcapacity and trade distortions intensify

Leading a large trade union delegation at the meeting, TUAC, IndustriALL Global Union and industriAll Europe raised deep concerns about mounting pressures on the industry. They stressed that without urgent and coordinated action, current trends could accelerate job losses and deindustrialization across many parts of the world.

The discussions took place against a backdrop of worsening market conditions, as reflected in the OECD Steel Committee’s conclusions. Global excess capacity reached 640 million tonnes in 2025 and continues to rise. At the same time, weakening demand, rising exports and increasing trade circumvention are placing significant strain on producers and workers alike. These dynamics are driving down prices, undermining investment and threatening the long-term viability of the sector.

Trade unions underlined that these are not abstract market developments, but trends with direct and severe consequences for workers across the steel industry.

“Structural challenges in the steel sector remain unaddressed, while the worsening of economic conditions and the incoming energy shock will exacerbate existing problems. For workers, this means restructuring, plant closures, offshoring, job insecurity, and growing pressure on wages, working conditions, and social dialogue. We need OECD governments to act decisively to secure the future of steel in our countries and quality jobs in the industry”,

declared Veronica Nilsson, TUAC general secretary.

Growing uncertainty is also fuelling short-term corporate behaviour, with profits too often directed towards shareholder returns rather than reinvested in jobs, skills and low-carbon production.

“Across Europe, one of the main problems is the lack of investment. Companies are failing to reinvest in production, in workers and in the transformation of our industrial sites, putting the future of the steel industry and entire regions at risk. Responsible business conduct demands a sustainable approach to investment from management. As Europe implements the steel action plan, as we have jointly demanded, companies should unlock their investments. This would be a tangible signal to the workforce that their jobs are valued and that steel companies also have skin in the game,”

said Judith Kirton-Darling, general secretary of industriAll Europe.

Trade unions highlighted several critical challenges:

• Insufficient long-term investment is weakening innovation, decarbonization and workforce development
• Skills shortages are increasing as experienced workers leave the sector and fewer young people enter
• The transition to low-carbon steel risks being delayed without clear industrial strategies and funding

Unions stressed that the shift to climate-neutral steel will only succeed with substantial investment, long-term industrial policies and meaningful social dialogue. They called for stronger public investment, responsible business conduct and full worker involvement to ensure a Just Transition that protects jobs and communities.

“Responsible business conduct is not optional – it is central to the future of steel. Companies must reinvest in production and workers, rather than paying out dividends. And due diligence must be done with workers, not despite them with genuine union involvement, independent worker voice, and credible grievance mechanisms. Without genuine union involvement, independent worker voice and credible grievance mechanisms, we risk weak audits, corporate whitewashing and further disruption to an already fragile industry,”

said Atle Høie IndustriALL general secretary

Finally, trade unions reaffirmed their readiness to work with governments, industry and the OECD to deliver coordinated solutions. They called for decisive action to support sustainable steel production, quality jobs and fair global competition.

Read the TUAC statement here