Tata Steel workers strike against the pension scheme

London: A fourth trade union at Tata Steel UK voted on June 5 for strike action, setting the scene for the biggest labour dispute in the British steel industry in three decades after three unions backed a strike last week.

Members of trade union Unite voted 70 per cent in favour of a strike over Tata Steel's proposal to change their pension scheme. They will be joined by members of UK unions Community, GMB and UCATT if a strike proceeds.

"We have offered Tata Steel UK the savings it says it needs. Instead the company is hell bent on making people who work in a physically demanding environment graft unnecessarily for a further five years to get their full pension," Unite national officer for steel Paul Reuter said.

On Wednesday, British Prime Minister David Cameron said the government had started discussions with the steel industry over how to safeguard jobs and highlighted the need for talks with Tata Steel.

A spokesman for Tata Steel said: "Everyone agrees that change is needed to resolve the challenges facing our pension scheme which has a projected shortfall of more than £2 billion."

"We have worked hard to find a fair and balanced way of overcoming these challenges. We are disappointed therefore that no shared recommendation with the unions could be reached."

Tata Steel will announce new measures shortly to lessen the impact of the proposed pension scheme changes, the spokesman said.

The National Trade Union Steel Co-ordinating Committee, which represents Community, GMB, UCATT and Unite, will meet early next week to discuss what action to take.

The threat of a strike is seen as a possible deterrent to future investment in the British steel industry, which has struggled to operate profitably despite government measures to help boost the industry.

Late last year, Tata announced talks to sell off a chunk of its loss-making mills to Geneva-based Klesch Group, prompting concerns about potential job losses.