BMW workers end dispute over pensions rights

Workers at BMW’s UK plants – including the Hams Hall engine factory – have agreed to end their dispute over pensions rights following a revised offer from the German company.

A series of one-day stoppages had blighted production at the plants – which also include Cowley, Swindon and the Rolls-Royce factory in Brooklands – in May as Unite workers voted overwhelmingly in favour of industrial action in support of their claim.

BMW had proposed closing its final salary pensions scheme at the end of May. The trade union claimed the move could mean some of the workers could lose up to £160,000 in retirement income.

The company’s revised offer sees the closure of the final salary pension scheme and workers moved into one of the leading defined contribution pension schemes in the auto industry.

Unite shop stewards did not make a recommendation on the deal, which also includes greater flexibility on the timings of transitional payments totalling £22,000 over three years.

Alternatively, members can opt for a transitional payment of £25,000 spread over three years to be paid into their new defined contribution scheme.

BMW initially offered workers transitional payments worth £7,000 in an effort to solve the dispute, which saw four walkouts and brought engine, Mini and Rolls-Royce production lines to a halt.

In a ballot on the revised offer, the Unite members voted 81.5% in favour of accepting the deal.

Unite national officer Fred Hanna said: “Unite members have overwhelmingly backed the revised pension offer bringing this long running dispute to an end.

“BMW initially thought it could railroad its pension changes through with transitional payments of just £7,000. It’s testament to the resolve of Unite members and their solidarity that the carmaker was forced to more than triple these payments and give additional guarantees.

“BMW’s UK workforce is among the most efficient and skilled in the auto industry. We look forward to working with BMW to ensure the world beating Mini and Rolls-Royce motor cars go from strength to strength.”