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Indian steel giant Tata Steel today told British trade unions that its “doors remain open” to seek an agreement over an ongoing pensions row.
The company’s statement followed a legal notice issued by the trade unions that they plan to ballot their members for industrial action from May 6, a day before Britain’s general elections.
“We have made clear to the unions that our door remains open,” a Tata Steel UK spokesperson said here.
The industrial action ballot is sought by unions to decide between a strike, lock-out and action short of a strike based on the majority view of an estimated 17,000 employees.
Ballot papers will be posted to union members from May 6 and the ballot process is expected to conclude on May 29.
The dispute centres around Tata Steel’s proposal to replace the existing British Steel Pension Scheme (BSPS) with a “money purchase” pension scheme in which employees, the government and the employer will make definite contributions.
The unions - Community, GMB, and UCATT - have rejected it on the ground that it would increase the financial burden on the employees.
“We have given official legal notice to Tata Steel UK about their intention to ballot their members for industrial action in their ongoing dispute over pensions,” the unions said in a statement.
“The unions are urging their members to vote in favour of strike action and action short of strike,” it said.
Tata Steel, on the other hand, maintains that its offer is fair.
It said: “The company tabled proposals to the national officers of the trade unions whereby the defined benefit (final salary) scheme would remain open to future accruals subject to a number of modifications.”
“As agreement with the trade unions on these proposals could not be reached, the company has initiated a 60-day statutory consultation period with scheme members on a proposal to close the scheme to future accruals for existing members,” it said.
“The consultation process provides opportunities for employees to comment on the proposals and to suggest alternatives that they wish the company to consider, other than the proposal of closure to future accrual.” the statement added.
The company also remains committed to providing employees with competitive future pension provision.
If strike goes ahead, it would mark the biggest such action in the UK steel industry in nearly three decades.
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