December 07, 2016
Tata Steel UK reaches agreement with the trade unions
The step is a progress towards the closure of its defined benefit pension scheme to future accrual and take important steps towards a more sustainable future
Tata Steel UK today reached an agreement with trade unions on a number of proposals that would structurally reduce risks and help secure a more sustainable future for its UK business.
The company will next week start consultation with its employees on a proposal to close the British Steel Pension Scheme to future accrual. Employees would be offered a competitive defined contribution scheme.
The proposal on pensions and other changes in the employment terms are part of the ongoing transformation plan that the business is undertaking. As part of today’s agreement all parties will work towards making Tata Steel UK a sustainable business.
The company and trade unions have also agreed on the principle that subject to the structural de-risking and de-linking of the British Steel Pension Scheme fund from the business, Tata Steel UK will continue the existing