Unite condemns GE decision to close final salary pension scheme
19 May 2011
General Electric (GE) has today (19 May 2011) announced the
closure of its final salary pension scheme to new entrants - new
members will now go into a new defined contribution scheme - and
the introduction of a flexible benefits package.
Ian Waddell, Unite national officer for aerospace &
shipbuilding, said: “GE recently announced first quarter earnings
of $3.6 billion, up 58 per cent from the first quarter of 2010.
Employees in the UK will struggle to see why such a rich company
should make such punitive changes to its pension scheme. There can
be no other reason than the transfer of risk from the company to
the employees, who will now have to gamble on their pension being
enough to see them through old age.
"These changes will be a bolt from the blue for our members and
we will be demanding an explanation from GE for its strategy so
that we can negotiate a better deal for our members on pensions.
Flexible benefits will do little to sugar this particularly bitter
pill.”
There are 18,000 UK employees and GE has businesses in aviation,
financial services, energy, transport and logistics and healthcare.
Unite members work on aerospace products, including avionics,
instruments and propellers, supplying the civil and military
aerospace industries in the UK and worldwide.
ENDS
Contact: Ciaran Naidoo on 07768 931 315
