Tata Steel UK workers have voted in favour of proposals to turn around the struggling business, potentially saving 8,000 jobs but also leading to cuts to their pension benefits.

Workers from the Community, Unite, and GMB unions all backed the plan in separate ballots. Approximately three-quarters of votes supported the proposals, which involve saving the Port Talbot steelworks in south Wales.

Tony Brady, national officer at Unite, said steelworkers had made “great sacrifices” to try to protect the company’s future, which has been at risk since Tata Steel announced a review of its operations nearly a year ago.

Tata Steel had proposed saving 8,000 jobs in its UK business and the Port Talbot steelworks by investing £1bn in modernising its operations over the next 10 years.

This investment depends on spinning off the pension fund into a separate entity and replacing the final salary pension scheme with a less generous contribution scheme.

The existing scheme – the British Steel pension scheme (BSPS) – could enter the Pension Protection Fund (PPF) as part of the arrangement, which would result in a 10% cut to members’ benefits. For this to occur Tata Steel must convince the Pensions Regulator that its UK business is on the brink of insolvency and is likely to have to pump hundreds of millions of cash into the scheme.

Tata Steel has claimed it could not afford to continue supporting the pension scheme. The BSPS has 130,000 members and £15bn of liabilities. It would be by far the biggest pension scheme to be taken on by the PPF.

The company, which could merge its European business with German conglomerate ThyssenKrupp once the restructuring is complete, welcomed the vote.

“We recognise this has been a difficult decision for employees. It shows employees are doing everything they can to develop a sustainable future for the business,” a spokesperson said. “We will continue to work with the trade unions and other stakeholders to deliver Tata Steel UK’s transformation plan and develop a sustainable future for the business.”

Union leaders said Tata Steel now had to deliver on its proposals but also called on the government to provide more support for the industry.

Roy Rickhuss, general secretary of Community, said: “Steelworkers have taken a tough decision and have shown they are determined to safeguard jobs and secure the long-term future of steelmaking. Nobody wanted to be in this situation, but as we have always said, it is vital that we now work together to protect the benefits already accrued and prevent the BSPS from free-falling into the PPF.

“We now expect Tata to make good on their promises and deliver the investment plan for the whole of their steel business. The UK government still has an important role to play and we fully expect them to deliver tangible support for steelmaking in the UK.”



The jobs have been at risk since last March when Tata Steel announced it was putting its UK business up for sale amid losses of more than £1m a day. The decision sparked a political crisis as the government scrambled to secure the future of the Port Talbot plant. Port Talbot is one of only two sites in Britain that makes steel in blast furnaces.

The government welcomed the result of the vote. A spokesperson said: “This positive vote is an important step forward for the future of Port Talbot and Tata Steel in the UK and it is now vital that all parties work together to deliver on the agreed proposals.

“It is testament to the commitment of its workforce that they are willing to work so constructively with the owners to secure the future of the plant. The government will play its role in supporting the steel industry to help deliver a sustainable future.”