STEEL unions have approved changes to a company’s pension pot, officially ending the threat of the industry’s first strike in more than 30 years.

Workers at Tata Steel have accepted a deal on the British Steel Pension Scheme (BSPS), which will see the programme remain open.

Union members, including many of Tata’s 750-strong North-East workforce, had previously voted to strike when the firm revealed it wanted to close the BSPS, fearing it would force people to work five more years, until 65, to get their full pension.

However, Tata, which runs the Teesside Beam Mill, near Redcar, tabled a final proposal, promising to keep the scheme open, which unions have now approved.

Roy Rickhuss, general secretary of the Community union and chairman of the National Trade Union Steel Co-ordinating Committee, said unions were satisfied the situation has been resolved, but warned Tata still has bridges to re-build with staff.

He added: “There is more to do, both to resolve the concerns of members and meet the wider challenges faced by the UK steel industry.

“It was apparent during this dispute the company was not listening to its workforce, which led to a serious breakdown in trust and confidence.

“All unions have already begun a dialogue with the firm to address these issues.”

According to the unions, 78.9 per cent of GMB members approved Tata’s changes, with 72 per cent in Unite, 70.3 per cent in Community and 53.3 per cent in Ucatt doing the same.

During the BSPS discussions, Tata maintained it had to amend the scheme to ease a £2bn deficit, and always said it was open for talks with unions, while trying to introduce measures to lessen the impact on workers.

Reacting to the union vote, a spokesman said: “The agreed proposal represents a fair and balanced solution in which UK employees will continue to be provided with high-quality pensions.

"The new arrangements, including modifications to scheme benefits, will address a significant proportion of the pension scheme’s projected deficit.

"Other actions to be agreed with the pension Trustee will address the balance.

"The company will now proceed with the completion of the statutory consultation process and continue to engage with the trade unions."

Tata’s also runs a special profiles plant at Skinningrove, in east Cleveland, and the Hartlepool Pipe Mill.