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Tata to cut redundancy package if workers strike

Reuters A woman photographs a Unite mural in Port TalbotReuters
The Unite union has installed murals around Port Talbot to support steelworkers

Tata Steel will withhold a "significantly enhanced" redundancy package if workers go on strike.

The company wrote to staff after Unite members voted in favour of industrial action over plans to cut almost 3,000 jobs.

Chief executive Rajesh Nair said the "most favourable financial package" it had ever offered would not be paid if staff took part in industrial action.

Unite said its members would not be "intimidated" by Tata.

The union had balloted members at the UK’s largest steelworks in Port Talbot and at Tata Steel’s site in Llanwern near Newport.

Unite has not published a breakdown of its ballot, but Mr Nair told staff 568 out of 857 union members (66%) had voted in favour of industrial action.

A total of 1,366 Unite members were invited to take part, representing a turnout of 63%, according to Tata’s figures.

Tata Steel UK Tata Steel UK chief executive Rajesh NairTata Steel UK
Chief executive Rajesh Nair wrote to Tata Steel UK staff following Unite's ballot

Tata Steel is currently in a formal 45-day consultation with Unite, Community and GMB unions over proposals to restructure the company.

Plans include closing the blast furnaces that produce molten iron from ore in Port Talbot this year, and installing an electric arc furnace that melts scrap steel.

Mr Nair, who is chief executive of Tata Steel’s UK operation, said the company was "disappointed" that strike ballots were held during the consultation period.

The company had "put forward a significantly enhanced, comprehensive package of support for employees impacted by the proposed transformation", Mr Nair said.

"As a combined offer, it is the most favourable financial package of support our business has ever offered," he added.

But he warned "these significantly enhanced employee support arrangements are conditional upon there being no industrial action in the business".

Reuters One of the blast furnaces in Port TalbotReuters
Tata Steel plans to end blast furnace produciton in Port Talbot this year

Tata Steel had no further comment to add when approached by BBC Wales.

Unite has been asked to comment.

When the result of its ballot was announced, Unite Wales regional secretary Peter Hughes said: "Tata has employed everything from bribes to threats to discourage our members from industrial action.

"They will not be intimidated into standing by while Tata attempts to carry out an act of devastating industrial vandalism."