Royal Mail strike ballot to go ahead unless pension scheme closure reversed

[TrueBlueTerrier]

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More than 100,000 Royal Mail workers will be balloted for strikes if the company does not change plans to close its defined benefit pension scheme, a union has said.

The Communication Workers Union attacked the controversial decision to close the scheme next March and warned of a campaign of industrial action.

A private session of the union's annual conference in Bournemouth decided to press ahead with plans for a strike ballot unless the company changes its position.

Delegates condemned Royal Mail's announcement earlier this month, and approved a motion which read: "Conference recognises that Royal Mail's decision - along with their proposals - is a clear signal that they intend to attack our terms and conditions to maximise profit for the shareholder."

Deputy general secretary Terry Pullinger said the mood was one of "anger".

He added: "If we cannot make genuine progress and get an agreement by August, we will have to take a serious decision about balloting for industrial action."

The union has put forward an alternative proposal for a defined benefit "wage in retirement" scheme.

The conference decided that if Royal Mail introduces changes by executive action, there will be an immediate ballot for industrial action.

Royal Mail said the pension plan was currently in surplus but it expects this to run out in 2018.

The privatised company's annual pension contributions are currently around £400 million.

It said that if no changes are made, the contributions could more than double to over £1 billion in 2018.

In a statement earlier this month, it said: "We have concluded that there is no affordable solution to keeping the plan open in its current form.

"Therefore, the company has come to the decision that the plan will close to future accrual on 31 March 2018, subject to Trustee approval."

The CWU said that in place of the current defined benefit scheme, Royal Mail plans to put all members into "inferior" money purchase alternatives.

On average, employees face losing up to a third of their future pensions, said the union.

For a 50-year-old worker earning £25,000 a year and retiring at 65, this would equate to a loss of £4,392 a year, it was estimated.

[robsbelly]

I will walk out tomorrow over this massive issue. Iv been working for royal mail for 27 years . I started aged 18 in 1990.i started my pension straight away so i have approx 27 years pension at the Mo. Under the new pension system i will lose £ 2500 a year if i take at aged 60 which i plan to do. I will lose even more if i work to 65 approx £4505 a year . Moya i heard received £500000 into her pension pot. We are being mugged off by this company. In the voice she is comparing our benifts to Amazon,Hermes,they are self-employed,we are not. Royal mail staff are bloody hard working so pay us right and leave our pension alone.

[westham000]

Well said Robsbelly , I totally agree with your post. Moya, gets £200,000 every year paid into her pension as part of her wage. What a hypocrite ! This Saturday I found 2 parcels from yodel doorstepped at WRONG addresses ! This is one of the companies that Moya compares us to, Disgusting! I personally would sooner be unemployed then be a slave and lose my terms and conditions , while Moya and the rest of the directors enjoy huge salaries , and company benefits such as share options etc. I suggest each and everyone of you put aside as much as you can into a strike fund and prepare for a long draw out period of unrest. Oct,sept and dec! And support your union!