Unite, the country’s largest union, said today (Friday 14 July) that it would be holding a consultative ballot of its 6,000 Royal Mail managers on the latest pension proposals put forward by the management.
The union said that it would be making no recommendation to its members on the package. The balloting of members is due to start early next week and close on Monday 7 August.
In a statement, the Royal Mail said that it is offering members the choice of joining either a defined benefit cash balance scheme or a defined contribution scheme. Royal Mail said it is one of few companies offering to replace one defined benefit scheme with another.
Unite officer for the Royal Mail Brian Scott said: “We are committed to holding a membership consultative ballot on the Royal Mail’s latest proposals, which will close on 7 August.
“We are not making any recommendation. We think it is important that Unite members have an opportunity to express an opinion on what is being put forward by the company.
“The latest position is an improvement from the original proposal and through our discussions we have achieved these improvements.
“One of the main developments is that we will keep the defined benefit pension scheme open and the lump sum approach being put forward will become a separate section of that scheme. This will reduce any adverse impact on members’ future retirement incomes.
“We have had many discussions with the company over the last few months and these have been difficult. However, the Unite negotiating team consider that what is on offer is the best achievable in the circumstances.”
Unite has about 6,000 members working for the Royal Mail that is now a privately-owned company, following its controversial sell-off by the coalition government after five centuries of state ownership.
Notes to editors:
For more information please contact Unite senior communications officer Shaun Noble on 020 3371 2060 or 07768 693940.
Unite is Britain and Ireland’s largest trade union with over 1.4 million members working across all sectors of the economy. The general secretary is Len McCluskey.