Pay frozen at Tata Steel works in Scunthorpe but staff strike bonus deal
The 4,000 employees at the Tata Steel works in Scunthorpe have agreed to forego a pay rise this year in a deal that will see bonuses restructured.
The settlement will see some of the long-standing bonus agreements of workers transferred to their basic wages.
And the move has been described by union bosses as the best they could secure in the circumstances.
The deal comes in the wake of an order from the Indian owners to find extra savings of 20 per cent by April next year to help the company meet the gap in its annual financial targets.
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Sean Scorer, the chairman of the works multi-union committee, said: "The unions have adopted a common sense approach to this year's pay bargaining in order to maintain the sustainability of the Scunthorpe works."
Mr Scorer said he expected "a small financial benefit" in the pay packets of employees as a result of the deal.
The chairman said talks would continue over the next six weeks to discuss the restructuring of the site's bonus agreements. He has convened a meeting of the works delegates next week to further discuss the restructuring.
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Mr Scorer said: "We shall also be back at the negotiating table next April to put in a pay claim for 2013-14."
Nic Dakin, Labour MP for Scunthorpe, said: "This is a reminder that we are in tough economic times.
"As has always been the case locally, the management and unions have a sensible approach to moving forward in difficult times.
"It would be better to have pay rises of course, but it is sensible to come to sensible agreements so that things can move forward positively."
The bonus restructure will see cash transferred in three instalments from the 30-year- old quarterly lump sum bonus agreement on the Scunthorpe site. The first instalment of five per cent would be backdated from April 1 and there would be two further payments of two-and-a-half per cent in 2013-14 and again in 2014-15.
Mr Scorer explained the rise in the basic wage would mean the current 23 per cent ceiling for the lump sum bonus would be cut to 13 per cent in 2014.
At the same time, Tata Steel – for the first time since taking over the business in 2007 – will set up a profit-related bonus to be paid on a one-off yearly basis. The new bonus, to be paid on average earnings, will start at five per cent, rising to 10 per cent in 2014.
A Tata Steel spokesman said: "We have agreed with our trade union colleagues the terms of this year's pay deal for the majority of UK employees. There will be no general pay increase this year.
"We have, however, agreed to restructure bonus schemes which will result in five per cent of the local bonus being consolidated into employees' base salary this year.
"The five per cent consolidated will be replaced in a new UK profit bonus scheme.
"Over the next two years, a further five per cent of local bonus will be consolidated into salaries and replaced in the UK profit bonus scheme.
"This agreement will be backdated to April 1, 2012."
The present quarterly bonus is based on a complicated formula including elements for productivity and delivery, union officials say.
Comments
by JohnJohn2011
Monday, October 15 2012, 4:00PM
“englander61 Shakermeister
I to watch all news channels and it is true what you say, the bbc (bias broadcasting corporation) and sky have exactly the same format / items (most things in UK are good) for our consumption to distract our attention from the real issues in the UK / World, when watching RT Today you are soon made aware as to what's happening in other parts of the world. Max Keiser report is also worth watching; I am surprised however that it has not been blocked from transmission to us. If Tata and I say if Tata are going to keep on producing steel in the UK / Europe the only thing that will happen to wages in general will be on a static or downward spiral. These large organisations have only one agenda that is to make as much profit as possible to enable investors to have good dividends. It may take more than 20 years to achieve their final aim. Remember what we were promised regarding utilities companies. As the older Tata employed staff gradually leave the industry, then the replacement staff will be on agency books thus driving wages down in all sectors even further.”
by englander61
Monday, October 15 2012, 10:17AM
“Shakermeister , Remember it was all started by the Labour party under Mr Blair . refusing to give us a say on joining the EU . A weak party giving in to all the EU,s demands .Check out the news on RT news to see what is really happening our news is censored hiding the true story on what's happening in other EU states ,People taking to the streets demonstrating wanting out of the EU the bankers union . Conservatives are no better than Labour ,Taking the shortfall of cash from working classes , Bills raising wages been kept low cut backs on services , All caused by been in the EU which has given us a huge surplus of labour that helps keep wages down . Making better profits for investors company's .”
by Shakermeister
Sunday, October 14 2012, 9:29PM
“That's the way it's always been with contracted labour . But don't worry , Tata are bringing in more agency workers who will eventually have little or no rights before long . The torry govt will soon see off all workers rights . Instead oh griping and arguing amongst ourselves we should be sticking together for better conditions across the board . As soon as the workforce is devided we've lost to the big multinationals . Wake up guys !”
by Sister_Wendy_
Sunday, October 14 2012, 8:23PM
“I thought he got his scoops by flapping his ears in pubs.”
by Hazzers
Sunday, October 14 2012, 7:58PM
“Let's not forget Sister Wendy, the story is by Nick Cole who used to be one of the Telegraphs full time reporters before his semi-retirement, now we have a fresh batch of young reporters. One of Nick Cole's colleagues at the Telegraph during that time was Rachel Cox, she has been Press Relations officer for Scunthorpe steelworks for the past number of years. It's easy to see most of the stories about the steelworks are by Nick Cole, could it be that Nick is top of Rachel's email list and the reason he gets all the scoops?”
by Sister_Wendy_
Sunday, October 14 2012, 5:05PM
“Oops, silly girl! I forgot to mention that he's the Baths 'manager' who used to be a 'political advisor' to the local Labour Party.”
by Sister_Wendy_
Sunday, October 14 2012, 5:03PM
“Did Sean Scorer's daughter, Hannah, write this story? It's unaccredited. They're friends of Dakin and her husband is a 'manager' at The Baths, a Dakin project. Funny old town.”
by Jacksaw
Sunday, October 14 2012, 4:30PM
“Hazzer,
If you feel that strongly then I repeat. Ask your union to negotiate with your employers (Tube City).
You will not receive better pay/conditions by moaning on here.”
by Hazzers
Sunday, October 14 2012, 11:29AM
“The Tube City lads are the grafters on the steelworks, all the Tata lads are fat lazy pulpit operators. It's about time the Tube City lads got the recognition for all the toil, we'er fed up of doing the graft only for the Tata boys to pick up the bonuses. And don't get me going on their terms and conditions..................”
by Jacksaw
Saturday, October 13 2012, 6:36PM
“Hazzer,
Ask your union to negotiate with your employers (Tube City).”