Workers face pension freeze at Corus steel plant
Workers at the Corus steelworks in Teesside have been told their pensions may be frozen until they are 65 if the plant is sold to Thailand’s biggest steelmaker, Nick Martin learns.
Channel 4 News has been told it is “highly likely” that workers will have to opt out of the British Steel Pension Scheme once the Redcar steelworks is sold to Bangkok-based SSI.
Corus announced it was close to sealing a £320m deal with SSI on Friday in a move which could see Teesside Cast Products reopened.
The 700 remaining workers were told about the pension doubts at a union meeting on Tuesday.
It means those intending to retire early may not be able to draw on their pension until at least 65.
One worker, who did not want to be named, told Channel 4 News: “We’re all really concerned about how this deal will affect us. I’ve been paying into this pot for 32 years and intended to retire in the next few years, but if we have to opt out of the pension scheme then I’ll have to wait or get another job.
“We’re all really happy that Teesside Steel is being brought back but we are worried that somewhere in the small print we will lose out. We feel like we could be stitched up.
“We could have a situation where some of the workers who retired in February, some with £100,000 pension pots, could come back and effectively earn a second wage whilst our pensions are frozen. We call them ‘double dippers’ and it’s causing friction amongst the lads.”
The Redcar steelworks was partially mothballed in February after Corus’s Indian owner Tata Steel announced that a major contract to supply steel had been withdrawn. Around 100 workers lost their jobs.
But the remaining 700 are facing an anxious wait to hear how the deal will affect them.
Geoff Waterfield, multi union chairman at Teesside Cast Products, said: “We understand that there will be concern and worry about this and we haven’t had the chance to discuss any of these issues because there has been a confidentiality agreement. Now that agreement has been lifted it gives us the opportunity to discuss the issue.
“I don’t want to give anyone any false promises, it’s going to be hard but the union is experienced in dealing with this issue.”
Mr Waterfield confirmed that tests had been carried out on the mothballed blast furnace with the view to reigniting it once again. But added that it would take time.
“We have had a look inside with cameras and it all seems fine but it’s an extremely technical process and one that cannot be rushed. SSI will want to make steel as soon as possible and so we expect the blast furnace will be up and running in the next four to six months.”
He also dismissed reports in some steel industry websites that SSI wanted to dismantle Teesside plant and ship it to Thailand.
“It is absolute rubbish and plain wrong. It simply would not be possible to do that.”