New Zealand Steel's blue collar workforce has agreed to forego annual bonus payments during unprofitable years to allow the Auckland-based unit of ASX-listed Bluescope Steel a fighting chance as it seeks $A50 million in annual savings.

With the workforce also taking just a one per cent pay increase over two years it was “a very good outcome” from a collaborative process, NZ Steel chief executive Andrew Garey told BusinessDesk. The new contract wasn’t due until next May and the early resolution recognised that “the business was…