Final salary cutbacks at airline and university

Birmingham University and British Airways are the latest employers to cut back on their pension provision.

British Airways has followed several major employers in deciding to close its scheme to new entrants. In contrast Birmingham University is restricting access to its scheme with only senior staff being allowed to join the final salary scheme. Staff earning up to £9.80 an hour will not get the final salary option.

Charlie Sarell, regional officer of public services union UNISON said: "The university management is intent on treaing their lowest paid staff as second class citizens, without the rights and benefits that they themselves enjoy. It is not just the pension and security in old age that is being denied to new staff and their families, but also many other benefits associated with the pension scheme."

UNISON and Amicus-MSF are taking their case to the University's Council believing that it has not been fully informed of the issues and concerns arising from the management's proposals.

The British Airways' decision was attacked by Chris Darke, general secretary of the airline pilots' union BALPA. He pointed out that the company had benefited from contributions holidays in the past but was now walking away from its responsibilities at least in respect of future employees.

Darke said "This is a short-sighted decision on the part of the company. Its final salary scheme has been instrumental in retaining qualified flight crew and, thereby, achieving a return on its investment in quality training."