India Inc India Inc: Thursday, 16 February 2017 05:35

UK workers back Tata Steel rescue plan

Thousands of Tata Steel workers in the UK voted in favour of a rescue plan put forward by the Indian steel giant that will secure their jobs.

Nearly 10,000 were voting in a ballot over the past few weeks on whether they would accept moving from a final salary pension to a less generous scheme in return for job safety and Tata's promise of nearly 1-billion-pound worth of investment over the next 10 years.

Members of workers' unions at sites in Wales, Scotland, South Yorkshire and Teesside all supported the new proposals.

Voting figures from Community union members showed 72 per cent in favour and 28 per cent against the changes; there was 76 per cent to 24 per cent split among Unite members; and a 74 per cent to 26 per cent divide at the GMB union.

A UK government 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."

The pension fund and its deficit were the reason that attempts by Tata to sell its UK steel business failed last year. It has since been pursuing a merger with ThyssenKrupp.

India Global Business’ has been tracking this issue

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