Bumpy landing is averted for aerospace pensions

Aerospace company Goodrich has pledged to preserve its pension scheme for at least five years in a “ground-breaking” deal negotiated by the Amicus section of the general union Unite.

The US-owned company’s decision last December to close its final-salary pension scheme to new members, and to increase existing members’ contributions by 3.5%, prompted its 1,600 employees across the UK to commence industrial action in January. Unite pointed out that Goodrich had taken a “pensions holiday” for more than five years, despite being advised in 2005 to resume its contributions.

A continuous ban on overtime and a withdrawal from activities aimed at improving production methods were accompanied by a day’s strike action, with a second strike called for last month before managers indicated that they were willing to hold discussions.

The union did not manage to re-open the scheme to new members, but it did persuade managers to phase in the increase in contributions over the next two years – and to add £250 to employees’ pay in both years to offset the cost.

Moreover, there will be no further changes to the scheme for the next five years – a commitment described by Unite national officers John Rowse and Bernie Hamilton as “an industry first and virtually unheard of”.