Unions back Tata deal on steel pensions

[jetblack]

Unions at Tata have recommended steel workers at its UK plants accept a deal which includes pension reform.

The three unions said the offer was not without issues but was the "only credible and viable way to secure the future".

Agreements on changes to pensions have been seen as essential to future investment, including £1bn at the Port Talbot plant in Wales over 10 years.

A ballot on the offer is expected to go ahead on Monday.

But up until now, unions have been saying the decision for more than 6,000 workers was a personal one, based on individual circumstances.

"We do not make this recommendation lightly," said a joint-statement from Unite, GMB and Community unions.

"Nobody is saying that the proposal on the table is without issues. We fully understand the concerns of members, particularly around the British Steel Pension Scheme (BSPS).

"But as we have said before what you are voting on is the best outcome that could be achieved through negotiation. It is our collective view, supported by our independent experts, that this is the only credible and viable way to secure the future."

A consultation on changes to the BSPS was announced in December, as part of a deal which included a pact to avoid compulsory redundancies for five years and 10 years of investment.

Under the changes announced, the BSPS would close to future accrual, replaced with a defined contribution scheme with maximum contributions of 10% from Tata and 6% from workers.

An initial offer involved a new pension scheme with contributions of only 3% from the company and 3% from employees.

More than 100 union members from across Tata met on Thursday.

The unions said they had listened to feedback from members, wanting them to make clear what their views were.

"As with any agreement, the devil is in the detail and some of the details have only been finalised this week," they added.

Aberavon MP Stephen Kinnock, who has the Port Talbot plant in his constituency, tweeted: "I am sure that steelworkers will take the steel unions' endorsement of the deal into account, when they are weighing up how to cast their votes".



Discuss.

[jetblack]

Tata is an Indian company - they have to be offered incentives by the Uk (Govt) in order to produce steel in the UK. If they weren't subsidised by the UK taxpayer they would shift production to, well, perhaps India, in a heartbeat. Cheaper cost of labour.

Good argument for the nationalisation of the steel industry IMO - in light of its strategic (miltary) importance to the national economy.
Good argument also for the imposition of import tarrifs on companies like Tata, that would stuff UK workers (and thus, the UK as a whole) at the drop of a hat.
[Its a strange state of affairs when a billionaire American braggart is the only one espousing, what seems to be, a socialist economic policy BTW]

However, the UK domestic postal service is different, surely - how you going to ship that off to China /India ??

We have way more bargaining power than perhaps we are aware here.

Not so sure that Unite et al should be recommending the workers in the steel works accept the DC scheme. But I suppose that in the face of the multinational behemoths they don't have much choice.
Do they ?

Where is our f***ing Govt. on this - you know, those that are supposed to be standing up for our interests.

I know Stephen Kinnock MP isn't in Government, but for all his heartfelt pouting, he's about as much use as ice cream brake discs. Much like his old man.

Still, he might one day end up with the top job

And then things will be just great