Mumbai: Tata Steel Ltd said on Thursday that members of the National Trade Union Steel Committee in the United Kingdom (UK) voted a day earlier in favour of the company’s proposal to close the pension scheme in the UK to “future accrual”.
Thousands of workers at Tata Steel’s sites in Wales, Scotland, South Yorkshire and Teeside in the UK on Wednesday had overwhelmingly accepted the company’s offer to move from a “final salary pension” to a less generous scheme, potentially saving their jobs and assuring the future of its plants.
“The formal pension consultation is expected to conclude in the coming days and Tata Steel UK will continue to review all of the responses and feedback received during this process and will continue to work with the steel committee and all relevant stakeholders,” Tata Steel said in a BSE filing on Thursday.
The proposal on UK pension was among the few other proposals that the trade union steel committee voted to support on 15 February, the filing said.
The results of the ballot showed that 75.6% of Unite, 72.1% of Community, and 74% of GMB union voted in favour of the proposal. Unite, Community and GMB are the three unions whose members voted on the package offered.
The company’s new defined contribution scheme will cover its existing 11,000 UK employees. The firm is, however, seeking regulatory approval to cut benefits for all 130,000 British Steel Pension Scheme members and spin off the scheme into a stand-alone entity, Reuters reported.