Steel workers face new pension threat
THE sale of a major steel business has raised fresh fears about the pensions of workers at three UK plants.
Tata Steel is in the closing stages of selling its speciality steelworks business to international industrials group Liberty House for £100m.
The future of the business and its 1,700 workers has been in doubt since March when Tata Steel put up all its UK operations for review.
But while unions welcomed the ‘certainty’ of the Liberty deal they warned workers could lose out on pension contributions.
It is feared workers could be moved out of the British Steel Pension Scheme and into a new one with lower payouts.
Harish Patel, Unite national officer for metals, said: ‘There could also be an impact because the scheme includes options for people affected by any job losses.
‘We will be trying to see if there is a way it can be part of the sale process. As a matter of urgency, we must see security for the pension scheme to which men and women have dutifully contributed all their working lives.’
Liberty, which also took over Tata steelworks in Scotland, said it was too soon to say what its plans were on pensions. However, they are not part of the employment conditions automatically carried over into the new deal.
A spokesman added: ‘Obviously there will be discussions and we hope for a positive outcome around that, but we cannot say more than that at the moment.’
The British Steel scheme has a £700m black hole and has been at the heart of negotiations between Tata and the Government. The firm is keen to strike a deal to get the scheme off its hands, threatening future payouts for members.
German steel group Thyssenkrupp is in talks with Tata to take on its UK business, but also wants it to fund a solution to the pension scheme black hole.
Indian- owned Tata said it had signed a letter of intent with Liberty House Group to start exclusive negotiations for the sale of speciality steels, which makes steel for the car, oil and gas, and aerospace industries.
The sale covers Rotherham electric arc steelworks, the steel purifying facility in Stocksbridge, a mill in Brinsworth and service centres in Bolton, Wednesbury and China.
Bimlendra Jha, chief executive of Tata Steel UK, said it was trying to solve its problems, which included developing ‘a more sustainable business in the UK as well as a self-sustaining future for the British Steel Pension Scheme’.
Unite is calling for an independent audit of the Liberty House deal.