Unions at Tata Steel’s UK operations have begun balloting thousands of members over plans for industrial action in protest at proposed changes to the steel giant’s pension arrangements.
On Wednesday, paper ballots were sent out to the homes of members of three unions – Community, GMB and UCATT at Tata Steel’s UK operations.
Members have until May 29 to participate in the ballot which offers them the option of strike action or “action short of strike action”. Any action would require a simple majority of those voting to endorse it.
Should they get the go-ahead, the unions would have to give Tata Steel a week’s notice before embarking on any strike action.
The decision on the length and nature of any strike action will take place following consultation with union members, a spokesperson for Community said.
A fourth union, Unite, will be balloting its members soon.
Together, the four unions represent around 95 per cent of the 17,500-strong workforce at Tata Steel’s UK operations, which have a production capacity of around 11 million tonnes (mt) a year (the group as a whole has an annual 29 mt capacity).
If a strike does go ahead, it would be the first such action in the UK since the 1980s, when thousands of steel workers went on strike over pay and closure fears. Unions say they were left little choice after negotiations over reforms to the British Steel Defined Benefit Pension Scheme failed to make headway.
Tata Steel has begun consulting on closing the scheme and moving members onto a defined contribution scheme, that lowers the company’s costs and risk exposure.
“I’ve tried on a number of occasions to re-engage with the company, and have had reassurances from Cyrus Mistry that they want to talk to us in the spirit of cooperation, but unfortunately the words are not followed up with actions and we are no further along with our discussions,” said Roy Rickhuss, General Secretary of the Community Union in a telephone interview last week.
Tata Steel says it is open to unconditional talks with unions to find resolution to the “very substantial challenges” of the pension scheme, which had seen its deficit grow as a result of longer life expectancy and low returns in financial markets.
The company says it remains committed to working with unions to shift the majority of the UK employees to different though “very competitive pension arrangements.”
Clarification
The number of people being balloted by the union is about 12,000 out of 17,000.