Tata reassurances sought over 'shattered' pension confidence

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Port TalbotImage source, Getty Images

Workers' confidence in Tata has been "shattered" says an assembly member meeting steelmakers in Port Talbot.

Aberavon AM David Rees wants to know "what flexibility we have" on a pensions deal being backed by unions.

They say extra details have been negotiated, such as a commitment to those nearing retirement.

While unions said Tata's offer is not without issues, they insist it is the "only viable way to secure the future" of the company's UK steel business.

Ahead of the Friday's meeting alongside Llanelli AM Lee Waters, Mr Rees told BBC Radio Wales: "I want to see what flexibility we have with this deal.

"A lot of steelworkers are very unhappy, their confidence, from experiences over the past 12 months have been shattered. They need reassurances."

Mr Rees said it was a decision for the unions whether to accept the deal, but he wanted to hear details from the company himself.

Changes to pensions are seen as essential to investment, including £1bn at Port Talbot over 10 years.

Aberavon AM Mr Rees has the biggest Tata plant in the UK in his constituency as more than 4,000 people work at the Port Talbot plant while about 650 workers are employed at the Trostre site in Llanelli - Mr Waters' constituency.

A ballot on the new pension offer is expected to be put to workers on Monday when Wales' 6,000 Tata employees can choose to accept or reject the deal.

Image caption,

Tata's workforce in the UK is in Wales - figures for April 2016

A consultation on changes to the British Steel Pension Scheme (BSPS) was announced in December, as part of a deal which included a pact to avoid compulsory redundancies for five years and 10 years of investment.

Under the changes announced, the BSPS would close to future accrual, replaced with a defined contribution scheme with maximum contributions of 10% from Tata and 6% from workers.

An initial offer involved a new pension scheme with contributions of only 3% from the company and 3% from employees.

More than 100 union members from across Tata met on Thursday.

A spokesman for the First Minister Carwyn Jones said: "We have been clear throughout this process that it is right for any changes to the pensions arrangements to be negotiated by the trade unions directly with Tata.

"As social partners we have supported our union colleagues every step of the way in fighting for what's best for steelworkers in Wales and we will continue to do so."

Aberavon MP Stephen Kinnock, who has the Port Talbot plant in his constituency, tweeted on Thursday: "I am sure that steelworkers will take the steel unions' endorsement of the deal into account, when they are weighing up how to cast their votes".