THE threat of North-East workers joining the first steel strike in more than 30 years has faded after unions recommended members accept a last ditch deal.

Workers were due to start a 24 hour walk-out at 6am on Monday (June 22) following a long-running dispute over pensions. The action would have involved Tata Steel staff across the UK, including many of its 750 staff in the North-East.

Monday's strike has now been suspended pending a new ballot where staff are being urged by the unions to accept the new offer.  

Workers from the Community, Unite, GMB and Ucatt unions were in dispute with Indian-owned Tata Steel over the firm’s plans to close the British Steel Pension Scheme, fearing it would force people to work five more years, until 65, to get their full pension. 

Tata, which runs the Teesside Beam Mill, near Redcar, has long maintained it must change 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.

Following talks between bosses and unions supported by the Advisory, Concilliation and Arbitration Service (Acas), which concluded on Tuesday, the company tabled a new proposal, which will see the pension scheme remain open. 

At a meeting today in London of 100 senior trade union delegates it was decided that the new offer could be put to a ballot of all union members and therefore strike action is suspended, the unions said in a statement.  

Roy Rickhuss, Chair of the National Trade Union Steel Co-ordinating Committee and General Secretary of Community said: “Our members standing up for their pensions has made Tata Steel change its mind. Through meaningful discussions and negotiation with the company we have been able to keep the scheme open and improve on their final offer prior to their decision to close the scheme.

"This is a massive turnaround and means there is the opportunity for the British Steel Pension Scheme to provide dignity and security in retirement for many more steelworkers in the future. As we have always acknowledged there are some significant challenges for the scheme but this new offer addresses some of those issues while enabling our members to continue to accrue final salary pension benefits. Our members will make the final decision but the unions are recommending a vote in favour because we believe we have secured the best available deal from the company.”

 Harish Patel, National Officer for Unite, said: “Union action brought the company back to the table with an improved offer. The BSPS is so important to Tata Steel employees and we have managed to keep the scheme open and secure a deal around early retirement. This is the best deal we could get and now our members get to decide. We will be urging them to vote for the offer on the table.”

GMB National Officer, Dave Hulse, said: “We always told Tata Steel that closing the scheme was unacceptable but it took the unity and resolve of trade union members to make them listen. Now we’ve got a deal that means the scheme is open, the importance of early retirement is recognised and the challenges faced by the scheme are addressed. Of course now it’s up to our members but the unions are recommending acceptance.”

Officials from the British Steel Pension Scheme will be conducting roadshows around Tata Steel sites next week to explain the new pensions offer. Unions will also to begin to put in place arrangements to ballot members on the proposals.