Tata Steel's UK unions approve new turnaround plan

MUMBAI: Tata Steel's labour unions in UK voted to approve the new turnaround plan proposed by the company in a bid to protect jobs and avoid potential sale or closure of the steelmaking plant in the country.

Tata Steel had reached a deal with the agitating trade unions in December plant to invest 1 billion pounds in the loss making Port Talbot steel plant over the next 10 years, and also to avoid any compulsory job redundancies.

The company also started a process to close the expensive British Pension Scheme replace it by defined contribution scheme, which will lower uncertainty in payouts. The new scheme will have a maximum contributions of 10% from the company and 6% from employees.

"This result provides a mandate from our members to move forward in our discussions with Tata and find a sustainable solution for the British Steel Pension Scheme," said Roy Rickhuss, General Secretary of Community.

Tata Steel's new strategy to continue to invest in UK is in sharp contrast to former Chairman Cyrus Mistry's strategy to either exit or merge UK steelmaking operation without any commitment on jobs. The company did not give any clarity on the ongoing discussion to merge with Thyssenkrupp.