The company said it had reached an agreement with various trade unions on proposals that would "structurally reduce risks" and "help secure a more sustainable future" for its UK business.
Union Unite said the news was a "step in the right direction" for the industry eight months after Tata revealed its intention to sell its UK steel assets, particularly its production facility at Port Talbot in Wales.
Key highlights of the proposals include:
• Production - A guaranteed minimum five-year commitment to two blast furnace steelmaking, with a further commitment to reinvest in Blast Furnace 5 as part of a capex investment plan.
• Jobs - A jobs pact equivalent to Tata's agreement with steelworkers at Ijmuiden in the Netherlands, which includes a commitment to seek to avoid any compulsory redundancies for five years.
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• Investment - A comprehensive 10 year £1 billion investment plan to support steelmaking at Port Talbot and secure the future of the downstream sites.
• Pension – Tata Steel will begin a consultation on the closure of the British Steel Pension Scheme (BSPS) to future accrual, replacing it with a defined contribution scheme with maximum contributions of 10% from the company and 6% from employees.
While a move to close the BSPS is of "serious concern" to its members, Unite said it will ballot those affected on the proposal in the new year.
Unite's national officer Tony Brady said: "Today's news it a step in the right direction for our industry but there is still a lot more that government can and must do. The Tories say they are committed to an industrial strategy, but steelworkers need more than warm words.
"The commitments made today by our reps must now be followed by a commitment from the government that it will hold Tata to its word and ensure jobs are protected. The UK steel industry supports our whole manufacturing sector and it is vitally important that the future of that industry is secured for generations to come.
Community general secretary Roy Rickhuss added: "The past year has been incredibly difficult for steelworkers and their families. When Tata announced in March that it planned to sell the steelworks, no one knew if they would have a job by Christmas. This proposal would secure jobs for years to come and bring serious investment not just to Port Talbot but to steelworks across the UK."
Koushik Chatterjee, Group Executive Director Tata Steel, said: "The agreement between Tata Steel UK and the unions today marks an important step forward in the journey to develop a sustainable future for our UK steel business."
(LM/MH)
