Tata Steel has threatened to withhold an enhanced redundancy package if employees go on strike.
Last week, Unite announced that around 1,500 steelworkers at Tata plants in Port Talbot and Newport Llanwern had voted in favour of industrial action – the first time in 40 years that Port Talbot steelworkers have decided to strike.
They are protesting against Tata’s plans to close its blast furnaces, cutting 2,800 jobs.
However, in a letter to staff after the ballot result was announced, Tata Steel’s chief executive Rajesh Nair said it would take the “most favourable financial package” it had offered off the table if they go on strike.
Unite has not published a breakdown of its ballot result, but Nair’s letter said 568 out of 857 union members (66%) had voted in favour of industrial action, with a turnout of 63%,
A 45-day consultation with members of Unite, Community and the GMB unions is currently underway. Nair said he was disappointed that the strike ballot was held during the consultation period.
His letter, seen by the BBC, said Tata had “put forward a significantly enhanced, comprehensive package of support for employees impacted by the proposed transformation”, and warned that these arragements “are conditional upon there being no industrial action in the business”.
The company expects to invest £100 million directly in skills, training and job creation once the current 45 day consultation between Tata and the unions about how to restructure the company is completed.
Tata Steel has not commented further.
While there are legal protections that prevent an employer from dismissing an employee taking part in industrial action, there is nothing to prevent an organisation from taking action short of dismissal, which could include withdrawing an enhanced redundancy payment, said Natasha Letchford, senior associate at law firm Wilsons Solicitors.
“Assuming the enhanced payment is only an offer which has not be accepted by the employees, it can be withdrawn and it is unlikely that the employees will have recourse in the tribunal. If Tata have paid enhanced redundancy payments in the past and these have become ‘custom and practice’ within the company, it is possible that the employees could argue that they are entitled to an enhanced payment, although not necessarily the package that has been offered in this case,” she said.
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“This situation sounds similar to one involving BA and Unite which took place during 2009/2010. BA wanted to change the cabin crew terms and conditions and threatened that any crew member taking part in strike action would permanently lose their travel concessions. This caused additional difficulties for BA because, after the first round of strikes, the chief executive refused to back down on the travel concessions, which made the deal much harder to reach.”
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