Tata Steel workers back pension cuts to secure jobs

Tata Steel workers have agreed to take a cut in their pensions in order to try and secure the future of the business, which has been sold to new owners in £100m deal.

Prior to the company’s sale to Liberty House, which has recently signed on the dotted line for its Specialty Steels division, workers represented by the Unite, Community and GMB unions were consulted on Tata’s proposals around pensions, jobs, investment and production.

The proposals will see the workers’ pensions enter a Pension Protection Fund, which could mean a 10% cut in benefits for some members in return for securing their jobs.

The vote was similar across all three unions, with around three quarters of those taking part in the ballot, voting in favour of the proposals.

Tony Brady, national officer for Unite, said: “This is not a decision our members have taken lightly. It has been a hellish time for them, their families and their communities as uncertainty has swirled around the steel industry over this past year or more.

“During that time steelworkers have made great sacrifices to ensure the UK’s world class steel industry has a future. Those sacrifices must be repaid by Tata Steel honouring its 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.”

He said it was now up to the government to step up and support the British steel industry to ensure it had a viable future.

“Recent talk of steel being a low priority for UK government ministers in Brexit negotiations is shameful,” said Mr Brady.

“The UK government must now work in lockstep with the Welsh government and put steel at the heart of a manufacturing industrial strategy which ensures UK steel is used in all major infrastructure and defence projects.”

Roy Rickhuss, general secretary of Community, said: “This result provides a clear mandate from our members to move forward in our discussions with Tata and find a sustainable solution for the British Steel Pension Scheme (BSPS).

“Steelworkers have taken a tough decision and have shown they are determined to safeguard jobs and secure the long-term future of steelmaking. Nobody wanted to be in this situation, but as we have always said, it is vital that we now work together to protect the benefits already accrued and prevent the BSPS from free-falling into the pension protection fund.”

He said the union now expected Tata to make good on its promises and deliver the investment plan for the whole of its steel business.

The UK government still has an important role to play and we fully expect them to deliver tangible support for steelmaking in the UK.”

In a statement, Tata said: “The formal pension consultation is expected to conclude in the coming days and Tata Steel UK, will continue to review all of the responses and feedback received during this process and will continue to work with the Steel Committee and all relevant stakeholders.”

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