Tata Steel shares gain on suspension of industrial action at UK plant

Tata Steel shares jumped over 3 per cent on Wednesday after employee unions suspended industrial action at its UK plant while they consult members on a revised offer from the company.

Union Community, Unite, GMB, and UCATT are in dispute with Tata Steel 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 Union Community, said.

The industrial action, including an overtime ban and work to rule action, which began on Tuesday morning, will be suspended from Wednesday to Saturday. The original plan for strike action on Monday, June 22, has not changed for now.

The shares of Tata Steel jumped 3.62 per cent to Rs 305.10 apiece. The scrip opened at Rs 304.20 and has touched an intraday high and low of Rs 311.20 and 298.45, respectively.

(With inputs from Reuters)