TATA Steel bosses hit workers with a massive blow yesterday as they unveiled plans to axe over 700 jobs — just a day after unions had resolved a bitter pensions dispute.

The firm said that the 720 job losses, mainly cut from its Rotherham plant, were needed as the business had been underperforming due to increasing imports and higher energy costs, which are double of its European competitors.

Tata Steel’s European operations chief executive Karl Koehler said: “I realise how distressing this news will be for all those affected, but I am also extremely aware of our responsibility towards the ongoing survival of this business which will continue to employ about 1,500 people in South Yorkshire.”

He urged the government to take action to boost British manufacturing and added the company would work with unions and employees to redeploy workers and minimise the number of compulsory redundancies.

The news is doubly shocking for the workers as it was announced the day after a long-running dispute with Tata over pensions had been resolved.

GMB national officer David Hulse called the announcement “a very big blow for UK manufacturing particularly after all the hard work that has been put in by all concerned to bring stability to the business after the dispute about the pensions scheme.“

Community general secretary Roy Rickhuss said the news would be “devastating” to its members.

“This is a business that has seen a lot of restructuring and change over recent years and another round of potential redundancies will hit the workforce hard,” said Mr Rickhuss.