Action over utility pension closure
Trade unionists in the North West working for United Utilities are considering their next steps after rejecting the company’s plan to close its final salary pension scheme by next spring.
Under the company’s plan, all staff would move from a defined benefit, final salary pension scheme to a defined contribution, bought pension scheme after 31 March 2016.
The final salary scheme was closed to new entrants in 2006, but it still has more than 2,200 active members, who would lose out under the company’s proposals.
The joint trade unions — UNISON, Unite, GMB and Prospect — held consultative ballots of their members, which returned 96% to 97% rejections.
The company is carrying out a 60-day consultation, which started with a meeting on 16 November, where the joint unions presented their consultative ballot results
Eddie Parker, GMB regional officer, said: “The company has enjoyed a £226 million tax windfall over the past five years, due in part to low interest rates. It is now proposing to close the scheme because low interest rates are affecting future liabilities. You can’t make it up.
“United could have paid off the deficit with the tax windfall over the past five years.”