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T&G benefit in doubt
Page 9
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as it goes into the red
THE FUTURE OFa union benefit scheme has been thrown into doubt after it lost £354,000 in a year.
In the short-term the cost of belonging to the Transport & General Workers Union DriverCare scheme will increase by a third; the union is to meet on 25 October to review the scheme's future.
-It has a substantial deficit and we need to look at ways of addressing it," says a T&G spokeswoman.
More than 115,(X)0 drivers belong to DriverCare, which pays £7,000 to members who retire early due to ill health.
The weekly membership fee is being upped from 60p to 80p because the shortfall had to be met out of the union's general fund.
Only members of the union's road transport and passenger transport trade groups are eligible for membership of the scheme, which was launched in 1997, It initially offered the lump sum to drivers up to the age of 65 but this was reduced to 60 after the scheme failed to break even.
According to one union source the scheme cost £6m to run in its first year; £2.5m above the current figure. As a result the insurance company running the scheme sill fered huge losses and handed over control to the union.
Apart from the £7,000 lump sum DriverCare offers legal aid for certain traffic offences and financial help when drivers suffer assault or disability following an accident at work.