Tata 'must deliver' on steel deal demand

Steelmaker Tata needs to rebuild trust following a vote to back pension changes, say senior Labour politicians.

Llanelli MP Nia Griffith said the Indian-owned giant must meet a guarantee on no compulsory job losses and new investment.

Welsh Economy Secretary Ken Skates also called on the UK government to prioritise the steel industry and plough more money into research.

Workers voted on Wednesday in favour of a new reduced pension deal.

"It's been a terrible choice for the workers to make, between taking a lower pension payment or seeing the jobs go," said Ms Griffith.

"Having made that decision now, we really need Tata to stick to its promises, to step up to the mark, and get investment in there so we get the state-of-the-art plant, which means we can compete on the world market."

Steelworkers at Port Talbot last April when the business had been put up for sale

The MP, who is also Labour's shadow defence secretary, said, following a year of uncertainty for workers, it was "really incumbent on the company to build up that trust again".

Members of three unions at steel sites in Wales, Scotland, South Yorkshire and Teesside all supported the new pension proposals.

Under the proposed changes, the British Steel Pension Scheme will close to future accrual, replaced with a defined contribution scheme with maximum contributions of 10% from Tata and 6% from workers.

A one-off pension contribution of up to £10,000 could be made to Tata workers in their 50s who plan to retire early.

Tata's offer also included a £1bn investment commitment at Port Talbot and no compulsory job losses.

Discussions on the next steps for the steelmaker are continuing.

But economy secretary Mr Skates said he wanted to see pledges honoured.

"It's for Tata now to keep its side of the deal - to make sure that the £1bn of investment of the next 10 years begins as soon as possible," he told BBC Wales' Good Morning Wales programme.

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

Both he and Ms Griffiths also called on the UK government to get behind the steel sector, by examining issues like the costs of carbon and energy taxes on the industry.

Mr Skates also called on UK ministers to use a "sizable proportion' of a proposed £2bn research and development fund to aid UK steel makers.

"I've pressed for the notion of a 'steel deal', which is included in the UK industrial strategy, to be considered at speed," said Mr Skates.

On Wednesday, Koushik Chatterjee, group executive director Tata Steel and executive director for its European business, said there was "much more work to be done to make Tata Steel UK more financially sustainable".

"We look to other stakeholders such as the UK government to play their part in addressing the UK's manufacturing competitiveness position especially with relation to energy prices."

The UK government has described the decision by steelworkers to back the pension deal as "an important step forward".

A spokesperson added: "The government will play its role in supporting the steel industry to help deliver a sustainable future."