Why is it that the workers always suffer in these job-salvation deals? How much pain will executives and shareholders have to take?
Those are the questions that should be asked about proposals like this.
A last minute deal to rescue Tata Steel’s under threat Scunthorpe plant and save thousands of jobs may be secured if pensions and pay are reformed , it was reported last night.
Turnaround specialist Greybull is believed to be in exclusive talks about buying Tata’s so-called “long products” unit in the Lincolnshire town.
However, an agreement to sell parts of Tata’s loss-making European business could run into trouble over Greybull’s plans for restructuring to the company.
Greybull is understood to want to scrap the final-salary pension scheme and to introduce changes to overtime pay and bonuses.
In return they promise a cash injection of £400million to save the beleaguered plant.
However, last summer Tata staff threatened to strike over a planned shake-up of the pension scheme – which was in deficit by £2billion – which would have meant workers having to work an extra five years before they were able to retire.
Walk-outs were averted after Tata and unions agreed an undisclosed deal that kept the final-salary scheme.
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