Sharemasterindia.com: Shares of Tata Steel rebounded on Wednesday after trade unions decided to suspend industrial action at the steelmaker's UK plants. Shares of Tata Steel surged nearly 3.5 per cent to Rs 304 in early trade. Shares of Tata Steel had suffered losses in the past four sessions.
The unions' industrial action, including an overtime ban and work to rule action, which began on Tuesday morning will be suspended from Wednesday to Saturday, while trade unions consult their members on a revised offer from the company. The original plan for strike action on June 22 has not changed for now.
Four trade unions - Unions Community, Unite, GMB and UCATT - are in dispute with the company over proposed changes to employees' final salary pension scheme.
"It is good that Tata Steel has ... changed its mind about closing the (pension) scheme. This dispute isn't yet over but through meaningful discussion and negotiation we have made some steps towards finding a resolution," Roy Rickhuss, general secretary of Community union, said.
Tata Steel has approached the UK's independent Advisory, Conciliation and Arbitration Service (ACAS) to help with negotiations with unions.
At 9.26 a.m., shares of Tata Steel were up 2.26 per cent to Rs 301 as compared to a 0.40 per cent gain in Sensex.
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