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Explosion over Exel pensions
Page 8
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Unions demand answers on pension changes. Guy Sheppard reports.
UNION LEADERS representing thousands of Exel employees this week (19 September) demanded top-level talks with the company about its decision to scrap finalsalary pensions for new recruits.
In a joint letter, the Transport & General Workers Union and the RMT say the reason for switching to a money-purchase scheme has never been properly explained.
Exel argues it can no longer afford final-salary pensions but the RMT says it has not paid contributions to its pension fund for several years.
Mick Cash, senior assistant general secretary of the RMT, says a ballot among its 730 members in Exel has already demonstrated overwhelming support for industrial action over the issue (CM 12 June). "They [the company] don't seem to want to talk to us," he says.
"If they want to be open, upfront people, we will take them at face value but if they won't open themselves up, people will become suspicious," continues Cash.
Ron Webb,T&G national secretary for road transport, adds: "We will be writing identical letters to the company requesting top-level discussions."
Exel says it is unable to comment until the letters have been received.
Both unions argue that moneypurchase schemes seriously erode employee rights because the value of pensions becomes totally dependent on stock market performance, which can fluctuate either way.