Tata Steel UK workers reject pay offer, could strike

Unionised workers at Tata Steel UK could take industrial action after GMB Union and Unite the Union rejected the company's "best and final" wage offer.

The formal declaration of the ballot result is not due until later this week, but the note from Ian Williams, branch secretary at Unite, and Joe Kerr, convenor at GMB, says both have rejected the offer. The unions will meet this week to discuss further steps, and said they may ballot on industrial action.

Last month the company made the fresh offer — of a 7pc increase to base pay backdated to 1 April — after it had withdrawn one that unions said involved cuts to terms and conditions. Unions had been contemplating a national day of protest and even industrial action prior to the latest suggestion.

Staff are split on the outcome of the ballot. Some hope to achieve increases of 10pc, while others wanted to accept the offer. Community Union, which represents more production staff, has already accepted the offer.

Out of Tata's 8,000 workforce, around 5,000 are union members, split roughly 50:50 between Community and Unite/GMB.

The 2022-23 salary talks come amid much organisational restructuring at Tata Steel UK, with various senior staff moving into different roles in view of the necessity to decarbonise the company's operations, and after the split from Tata Steel Netherlands.

Tata remains in dialogue with government over support for its decarbonisation path. The Dutch entity has opted to utilise hydrogen as its main decarbonisation route. UK market sources expect Tata Steel to establish one electric arc furnace to reduce its footprint, with potential for further investment down the line. The company has not finalised any plans yet, however.

"Our discussions regarding remuneration and terms and conditions are being held this year in the context of a stronger financial performance by the company in the UK and an understanding of the current economic climate that is impacting our employees and their families," a Tata Steel spokesperson said. "We believe that the discussions will result in an agreement that is fair and equitable as we look to continue to invest in our people, our assets and our community."

By Colin Richardson