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Big boys scrap their final salary schemes
Page 13
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Two of Britain's biggest road transport companies this week (1 April) scrapped their final salary pension schemes despite continuing opposition from union leaders.
The switch to money purchase schemes for new recruits employed by WIncanton and Exel means the value of their pensions will be totally dependent on the stock market, making retirement prospects more uncertain.
Ron Webb, national road transport secretary for the Transport & General Workers Union, says special conferences of union representatives from each company will take place shortly to debate the issue.
"The conferences will be separate but in the same week so as to raise the profile of the issue. They will produce detailed strategies to achieve improvements in pensions across the board," he says.
Delegates are expected to endorse the union's fight to retain final salary pension schemes.
"There is no willingness to accept money purchase schemes," says Webb.
Like many other big companies, Exel and WIncanton have reviewed their pension arrangements In the light of falling stock market values and the increasing lifespan of the population generally.
Wincanton says final salary schemes are too great a risk to carry because the amount of money available is likely to fall short of the amount that needs to be paid out (CM 9-15 January).