Shares of Tata Steel on Thursday fell over 2 per cent on the bourses after UK unions notified the company of an industrial action on June 22 over the firm’s proposal to revise the British Steel Pension Scheme (BSPS).
The stock slumped 2.37 per cent to an early low of Rs 298.70 on BSE. Similar movement was seen on National Stock Exchange as well where the stock opened at Rs 306.10, then slumped 2.52 per cent to low of Rs 298.30 in early trade.
In a BSE filing on June 10, the firm said: “Tata Steel UK (indirect subsidiary of Tata Steel Ltd) has now been notified by the four unions (Community, GMB, Ucatt and Unite) of their plans to take industrial action in dispute over the company’s proposal to revise the BSPS’ contribution and benefits framework.”
Tata Steel employs more than 17,000 workers at four sites across Wales in Port Talbot, Newport, Flintshire and Carmarthenshire, as well as sites around England including Corby, Hartlepool, Rotherham, Scunthorpe, Teesside and York.
The filing further said: “As per the notice received, the unions in the UK propose a UK-wide ban on overtime working and a ‘work to rule’ commencing June 16, 2015 and additionally strike action at most of the UK operating units on June 22.”
However, the unions have indicated that they are open to talks with the Tatas over a meaningful settlement.