Plans for the first major steel strike in the UK in more than 30 years were called off on Friday after the unions said they had agreed to put a new offer from management to workers at Tata Steel.

The four unions representing Tata’s 17,000-strong workforce said they would suspend planned industrial action, which was due to start at the weekend, to consult their members on the new proposals.

An overtime ban was to come into effect on Saturday followed by the first walkout on Monday in a dispute over plans by the UK’s biggest steelmaker to close the group’s final salary pension scheme.

The unions — Community, United, GMB and Ucatt — said the new proposals put forward by management earlier in the week during negotiations at Acas, the conciliation service, would ensure the final salary pension scheme would remain open.

They added that they would recommend the new offer to their members.

Tata had earlier this year announced plans to close the pension scheme and move staff to a defined contribution programme, affecting 17,000 workers. The changes would also have seen the retirement age lifted from 60 to 65.

It is understood that the new deal would involve alterations to the final salary scheme that would help eliminate Tata Steel’s pension deficit, which is thought to be in the region of £2bn.

“Through meaningful discussions and negotiations with the company, we have been able to keep the scheme open and improve on [management’s] final offer before their decision to close the scheme. This is a massive turnround and means there is the opportunity for the British Steel Pension Scheme to provide dignity and security in retirement for many steelworkers in the future,” Roy Rickhuss, general secretary of Community, Tata Steel’s biggest union, said in a statement.

The recommendation of the offer by the four unions’ 100 senior shop stewards raises the prospect of an end to a dispute that has lasted three months. The industrial action has been suspended until 24 July to allow consultations with members to take place, the unions said.

Tata Steel did not immediately respond to request for comment.

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