Moneycontrol
Feb 16, 2017 08:30 AM IST | Source: Moneycontrol.com

Tata Steel workers okay pension reforms despite reduced benefits

The workers accepted to the resuce deal with the company that will tweak pension norms but will pump a guaranteed 1 billion euros into the plant.

Tata Steel workers okay pension reforms despite reduced benefits
Moneycontrol Bureau

Steelworkers working with Tata Steel in the UK, have voted in favour of the proposed pension reforms, effectively securing the jobs of thousands of employees working at the company's Port Talbot steel plant, according to a report in Sky News.

The workers accepted the rescue deal with the company's UK arm that will tweak pension norms but will pump a guaranteed 1 billion euros into the plant.

The new pension scheme, will have the people who retire with limited retirement benefits and any further payments to workers to be linked to the consumer price index inflation.

While most young workers were keen to agree to the reforms, the voters who approach retirement, voted against them.

Amid falling steel prices, Tata Steel's UK business was planned to be sold. But buyers were not happy with the company's pension schemes.

The vote that was held on Wednesday, will certainly safeguard jobs of the steel workers, but will also reduce their pensions.
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