Unite action on jobs, pay and pensions

Unite, the largest union in the UK, has this week begun an industrial action ballot on jobs, pay and pensions covering over 1500 members at the Fujitsu IT services company in the UK. The union has served 7 days notice to the company of the ballot which will begin on 9 October. The ballot result is expected to be available after 30 October

This follows a previous overwhelming vote for industrial action as part of a UK-wide consultative ballot against a proposal to close the company’s main final salary pension scheme and the imposition of a pay freeze. 87% of members voted in favour of strike action and 96% in favour of industrial action short of a strike in the consultative ballot.

Some 4000 employees in the main defined benefit pension plan are being hit by the company's plans to close the scheme to future accrual. The company intends to force this through by dismissing employees after the end of the consultation period in October, and offering them employment on new contracts which are unchanged except in relation to pensions. The union estimates that the proposed pension scheme change would reduce the total pay package of each employee by typically around 20 per cent.

The company imposed a pay freeze on UK staff earlier this year just a week before it was due to take effect, withdrawing promised pay rises to employees.

In late August, Fujitsu announced proposals for 1200 redundancies in the UK and has since put 6000 people at risk of redundancy, amounting to 50% of its UK workforce.

Fight for jobs, pay and pensions, October 2009