Profit share scheme for town's 3,000 steelworkers set to start

By Scunthorpe Telegraph | Posted: 6 Mar 2017

Back in profit British Steel is gearing up to share its first-year gains with its 3,000 employees in Scunthorpe.

The owners at Greybull Capital promised to launch an employee share scheme when it took over the former Tata Steel Long Products business last June.

In return the town's steelmen and women agreed to scrap previous bonus agreements, switch pension providers and take a year-long three per cent cut in pay.

Ian Smith, the secretary to the Scunthorpe works multi-union committee, told the company's newspaper "Steel Matters" : "The employee share scheme is almost ready to go.

Greybull's four partners, who bought the business for a nominal £1, have invested £39 million into the business since the takeover.

In January, executive chairman Roland Junck told the Telegraph that losses of £80 million have been wiped out, thanks to high-profile contract wins.

And while it won't be achieved this year, Mr Junck said at the time he hoped to see earnings of between £100 and £120 million reported soon after.

"We want to reach £100 million. We will not reach it this year, but we have a plan to go to that, from a minus £80 million to a plus of £100 million, maybe £120 million," he told the Telegraph.

​Mr Smith has also revealed talks between the trade unions and the company have started over proposed changes to the current retirement policy at British Steel.

The proposed package is said to create the potential for job-sharing and a benefits package, subject to an agreed notice period.

It has been designed for employees who are currently or thinking of drawing their pensions.

Follow us on Facebook and Twitter

Manufacturing News
Share Article

Grimsby News

Beast from the East Two sends offshore wind records tumbling

Hull & East Riding News

Work begins on new 25m Arco distribution site creating up to 200 jobs

Scunthorpe News

British Steel wins major German rail contract after enhancing its manufacturing capabilities

Your News

Would you want your employees working from home? Read more in our Your News special report