Steel unions secure commitment to keep Port Talbot open

Unions say proposal is a step forward but they will continue to fight for a level playing field for the UK steel industry

Steel unions have secured a commitment from Tata Steel to secure the future of jobs and production at Port Talbot and other steel works across the UK.

The proposed deal comes eight months after Tata Steel announced its intention to sell its steel assets in the UK.

The proposal includes: a guaranteed minimum five year commitment to two blast furnace steel making, a commitment to seek to avoid any compulsory redundancies for five years, a 10-year £1 billion investment plan to support steel making at Port Talbot and secure the future of the downstream sites, and Tata Steel will begin a consultation on the closure of the British Steel Pension Scheme (BSPS) to future accrual, replacing it with a defined contribution scheme with maximum contributions of 10% from the company and 6% from employees.

A statement from the steel unions – Community, GMB and Unite – said: “These significant commitments on production, jobs and investment are welcome, however the move to close the BSPS will clearly of serious concern to all members. After a detailed discussion, union reps have agreed to ballot all members on the proposal in the new year.

“This proposal represents a significant shift in Tata’s opening offer which included no detailed investment plan, no jobs guarantee, no commitment to two blast furnaces, and the closure of the BSPS with a new pension scheme with contributions of only 3% from the company and 3% from employees.”

The unions said they will continue to fight for a level playing field for the UK steel industry; for action on energy costs, on business rates, and on the dumping of foreign steel.