STEEL unions have called for urgent talks with the boss of Tata Steel, and asked the Government to intervene, over a proposed sell-off that would affect 750 North-East jobs.

GMB and other steel unions issued a statement responding to Tata Steel announcement of sale of Long Products business which employs 6,500 workers across Europe, including 750 workers at sites on Teesside and distribution centres in Darlington and Newcastle.

The unions fear the proposed deal with Geneva-based Klesch Group could have "serious consequences" for staff and local suppliers.

The statement says: "The trade unions within Tata Steel – Community, Unite and GMB – are disappointed by today’s announcement. Tata Steel has failed to consult at all with the trade unions before making this move, which could have serious consequences for employees and contractors right across Tata Steel, not just within the Long Products business that it wants to sell.

“The unions have been treated with contempt in this process as the level of consultation that we would expect ahead of such a major strategic announcement has not taken place. We were made aware of this fait accompli two days ago which is neither within the spirit nor the letter of long-standing Information and Consultation or European Works Council agreements.

“We have no comment to make about the potential buyer, the Klesch Group, as at this stage we are opposed to the principle of the sale. We will be seeking an urgent meeting with Tata Steel Chairman Cyrus Mistry, to discuss his motivation for this move and to explain the potential consequences.

"We want Tata Steel to take a step back and carry out the consultation with its unions, which it should have been doing in recent months when it was preparing to sell its assets.

“The fact that Tata Steel wants to abandon half of its European operations and pull out of an entire strategic market does not bode well for the future and ends Tata Steel’s vision to be a global steel player. Tata Steel has long emphasised that its European operations are ‘one company’ but today’s announcement is the final nail in that concept’s coffin.

“Next week, we will bring together trade union representatives from across Tata Steel to discuss the course of action that members wish to take. We are also calling on the government to intervene in the public interest to ensure a future for industrial assets of strategic importance to the UK’s construction, infrastructure and manufacturing base.

“Our immediate thoughts are with those employees, contractors, families and communities that are worried about their future and we would urge Tata Steel to follow its own Code of Conduct and act in the interests of the communities in which it operates by engaging in meaningful consultation with its trade unions before it progresses the terms of this Memorandum of Understanding."

Business Secretary Vince Cable said: “The next few months will be a time of uncertainty for the company and employees. The proposed sale shows the harsh reality of trading conditions in parts of the steel industry.

"I met the global head of Tata in India this week and he has personally re-affirmed to me his company's commitment to the British steel industry and to investing substantially in Port Talbot and strip steel.

"My officials and I will continue to work closely with Tata Steel and seek to meet the potential buyer, Klesch, to understand more about their plans. We welcome Klesch's stated intention to support the continuity of the business".

Who are the Klesch Group?

BORN in Cleveland, Ohio to a boxer father and educated by Jesuits, Gary Klesch started his professional career at local investment bank McDonald & Company. He then went to the US Department of Treasury before setting up in 1990 the Klesch Group, which owns assets, in chemicals, metal and oil, in around 15 countries with revenue of about £4bn. The group, which has its headquarters in Switzerland, specialises in buying and turning around distressed businesses. Earlier this week the European Commission approved its proposal to buy a refinery in Milford Haven, Wales.