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Members of three unions representing the majority of Tata Steel workers in the UK have voted strongly in favour of accepting reforms to Tata Steel’s pension arrangements, in a move that will help Tata Steel take its talks with ThyssenKrupp forward.
Tata Steel and the German steel-maker are in talks over the merger of their European operations. About 72 per cent of the members of Community, and 75.6 per cent of members of Unite — the two biggest unions — as well as 74 per cent of the third union GMB, voted in favour of accepting the proposals. This would help find a “sustainable solution for the British Steel Pension Scheme”, said Roy Rickhuss, General Secretary of Community.
“Steelworkers have taken a tough decision and have shown they are determined to safeguard jobs and secure the long-term future of steel making…it is vital we work together to protect the benefits already accrued and prevent the BSPS from free-falling into the PPF,” he added, referring to the UK’s Pension Protection Fund, that covers members of pension schemes that fall into insolvency.
Tony Brady, National Officer for Unite, called on Tata Steel to honour commitments on investment and job security. “Nothing less would be a betrayal and add to the deep mistrust that steelworkers now have for the company.”
Tata Steel had offered workers to keep both blast furnaces at Port Talbot open for at least five years with no compulsory redundancies, and plans to invest £1 billion over a 10-year period, in return for reforms that would de-risk its pension liabilities.
The pension reforms would involve replacing the defined benefit British Steel Pension Scheme with a defined contribution scheme with maximum contributions from the company of 10 per cent and employees of 6 per cent. Questions over the precise future of the plant and its employees had hung over the company, after Tata Steel put plans to sell the plant on hold, and launched discussions with ThysseenKrupp over the merger of its existing European assets.
“We acknowledge the result of the trade unions’ ballot,” said a spokesperson for Tata Steel. “We will continue to work with the trade unions and other stakeholders to deliver Tata Steel UK’s transformation plan and develop a sustainable future for the business.”
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