Unions and Tata agree deal to save 9,500 jobs

THOUSANDS of jobs at the UK’s largest steel manufacturer look likely to be secured after unions reached a deal with their bosses.

Tata Steel hammered out a proposed plan with unions that includes commitments to keep open the threatened Port Talbot steel works in South Wales and invest £1billion.

The huge boost for the industry follows months of uncertainty after the company’s work in the UK was put up for review in March.

Main parts of the deal include commitments to try to avoid compulsory redundancies for five years; to invest £1billion over ten years into steelmaking at Port Talbot and connected sites; and to keep open two blast furnaces in Wales for at least five years.

But the 9,500 affected workers in Wales, Corby and Hartlepool need to agree highly controversial proposed pensions changes. Tata Steel says it needs to close to new members the British Steel Pension Scheme (BSPS), which has a multi-million pound deficit that has been a stumbling block to its talks about a potential merger with German steel group Thyssenkrupp. It wants to replace it with a scheme that unions say will leave their members worse off.

A Community union spokesman said: ‘These significant commitments on production, jobs and investment are welcome, however the move to close the BSPS will clearly be of serious concern to all members.

‘After a detailed discussion, union reps have agreed to ballot all members on the proposal.’