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Tata steelworkers vote to accept reforms to their pensions

Credit: Ben Wright/PA Wire

Tata steelworkers have voted to accept reforms to their pensions, unions announced.

The consultative ballots on Tata Steel's proposal on pensions, jobs, investment and production closed at noon today.

All union members were asked if they accepted the proposal, and the results for each union are as follows:

  • Community
  • Turnout: 70.5%
  • Yes: 72.1%
  • No: 27.9%
  • Unite
  • Turnout: 69.2%
  • Yes: 75.6%
  • No: 24.3%
  • GMB
  • Turnout: 51.5%
  • Yes: 74.0%
  • No: 26.0%

Leaders of the three unions recommended acceptance of the changes as the best that could be achieved through negotiation.

The changes include the introduction of a defined contribution (DC) pension scheme, with maximum employer contributions of 10%, following the closure of the British Steel Pension Scheme (BSPS) to future accrual.

Tata Steel workers to vote on new pension offer

Credit: PA

A ballot on a new pension offer will be put to Tata Steel workers from today.

All unions and officials have agreed to fully endorse the proposal which includes a £1bn investment over 10 years.

The deal includes a two-blast furnace operation at Port Talbot and plans for no compulsory redundancies for the next five years.

But the current pension scheme will be terminated as part of the deal in return.

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Union says TATA employees will not be guided by politicians

Unite Wales says TATA employees will not be guided by “publicity seeking politicians”

This week Adam Price, Plaid Cymru’s Economy spokesman, called on Port Talbot's steelworkers to reject the pensions deal on offer from owners Tata.

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The comments made by Plaid Cymru are deeply unhelpful at the present time.

Each employee of TATA has a difficult and personal decision to make.

As a Union we will be guided by our members.

It is for them to instruct us as to what their collective position will be on the proposals.

– Andy Richards, Unite Wales Secretary

In December the Indian steel giant made a commitment guaranteeing production at Port Talbot for five years and pledging to seek to avoid compulsory redundancies.

It also announced that it would consult with workers on closing the existing British Steel pension scheme and replacing it with a new, defined contribution scheme.

Unions will ballot their members on the proposals later this month.

Tata proposals 'welcome development' says Secretary of State for Wales

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Secretary of State for Wales, Alun Cairns, has welcomed the Tata proposals which will secure the future of jobs and production at Port Talbot.

Commenting on the announcement, Alun Cairns said no stone had been left unturned in the Welsh Government's work to support the steel sector.

The progress made over the last few days between Tata and the trade unions over a proposal to put to workers is a welcome development. The UK Government continues to work with partners, the Unions and the Welsh Government to ensure we find a long-term viable solution for the industry.

We have left no stone unturned in our work to support the steel sector and we have been addressing the challenges facing the industry. We are committed to working with a range of parties to achieve a sustainable long term future for steel making at Port Talbot.

– Alun Cairns, Secretary for State for Wales
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