STEEL bosses have made a last-ditch attempt to stop strike action across North-East plants.

Tata Steel has called on workers to reject unions’ calls for a walk-out over pensions.

The company is looking to make changes to the British Steel Pension Scheme (BSPS), which include the removal of early retirement enhancements, saying it faces a £2bn shortfall due to the tough economic climate.

However, the plans have been criticised by the National Trade Union Steel Co-ordinating Committee (NTUS), which has called on staff to down tools.

Unions Community, GMB and Ucatt are also due to announce ballot results on strike action later today (Friday, May 29), with Unite set to reveal its results next week.

If workers take action, they will join the first national dispute in more than 30 years.

The BSPS had 143,000 members as of late last year, with assets of about £13.6bn.

But Tata, which employs hundreds of workers in the region, and operates the Teesside Beam Mill, near Redcar, and a special profiles plant, in Skinningrove, east Cleveland, said it needs to change the BSPS to support its own future, and that of many workers not yet close to retirement age.

In a letter to staff, Dr Karl-Ulrich Köhler, Tata’s European operations chief executive, said: “I understand the frustrations at this situation, but I ask workers not to support industrial action to retain unaffordable early retirement benefits.

“That would be self-defeating and would jeopardise our efforts to build a sustainable business in the UK.

“Our actions have been aimed at developing an affordable and sustainable pension scheme for all; from the younger generation to our longer serving members.

“The past few years have seen the UK, and most of the world, go through the worst financial crisis for generations.

“One of the consequences has been record low interest rates.

“Like savings in the bank, our pension scheme’s assets have not been growing fast enough to keep up with increases in the expected cost of providing benefits.

“The result has been a huge shortfall of up to £2bn, which is clearly not sustainable.

“The unions continue to insist on keeping unaffordable early retirement enhancements, which would favour our older colleagues, but would be to the detriment of younger members of the team.”

The anti-strike call comes after Tata unveiled plans to create a new business, raising hopes for the futures of hundreds of North-East workers.

Bosses say they will make its Long Products division a standalone subsidiary in its European operations.

The switch to the new business, known as Longs Steel UK, is expected to be finalised next month, with officials hoping it will help attract state funding.

Fears had been raised over jobs at Long Products, which employs about 750 North-East workers and includes the Beam Mill and Skinningrove site, after Tata last year opened talks to sell it to Gary Klesch, a former Ohio steel mill electrician.

However, despite the announcement, the firm says it will continue talking to Mr Klesch.