Employers with good prospects should not cut pensions
4th June 2009
Derek Simpson, the joint leader of Unite the union, has today
expressed outrage at employers which have good long term prospects
using the recession as an excuse to permanently cut pensions.
Barclays has announced it intends to close its final salary
pension scheme to 18,000 staff. BP also announced the closure of
its non-contributory scheme to new recruits. The most recent
valuation showed it to be 135 per cent funded. In the year 2008, BP
posted £18.1 billion in profits.
Last month, Fujitsu announced its intention to close its final
salary pension scheme to 4,000 employees. Fujitsu made £177 million
of profits during the last financial year.
Derek Simpson, Unite's joint general secretary, said: "It's
outrageous and totally unacceptable for employers with good long
term prospects to use the recession as an excuse to cut
pensions.
"Unite will fully support its members if they decide to stand up
to employers hell bent on eroding pension benefits during the
recession.
"We are prepared to work with employers who face genuine
difficulties by agreeing temporary measures to deal with the
economic downturn which is a short-term problem.
"The government should act to prevent other employers from
following suit. It is imperative that when the recession comes to
an end workers' terms and conditions are not permanently
eroded."
ENDS
Contact Ciaran Naidoo on 07768 931 315
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