Tesco closes defined benefit pension scheme

Supermarket giant Tesco has confirmed plans to close its defined benefit (DB) pension scheme and to introduce a flexible benefits package for store workers to help the employer reduce annual costs of up to £250 million.

The group announced in a trading statement to the London Stock Exchange that it was to start a “consultation to close the company defined benefit pension scheme to all colleagues”.

It added in a letter to all staff: “We now need to think about its affordability and sustainability and the impact it has on our competitiveness. The most important thing is to protect the pensions that colleagues have earned as well as manage the risk to the scheme and to Tesco.”

The Unite general union has members working across the Tesco distribution network as drivers and warehouse operatives. It warned that Tesco staff shouldn’t be made to pay because of boardroom failure.

National officer Adrian Jones said members were “extremely concerned about their futures”.

“We all know that Tesco’s mantle has wobbled recently but it is deplorable that management are now making the workers pay for failure at the top,” he said. “This is on the same day that it announces the appointment of another [chief executive] whose remuneration package will be staggeringly high compared with our members."

www.tescoplc.com/files/pdf/results/2015/14-15_trading_statement/14-15_trading_statement.pdf

www.usdaw.org.uk/newsevents/news/2015/jan/usdawstatemtn.aspx

www.unitetheunion.org/news/tesco-workers-should-not-be-made-to-pay-for-boardroom-failure-warns-unite/