Union vows to fight BMW pension changes
PLANS to close the final salary pension scheme for about 5,000 BMW car workers has been strongly criticised by trade union Unite.
The German car maker plans to close its two final salary schemes to future benefits from June next year, transferring workers over to a less generous defined contributions scheme instead.
The move will impact the pensions of thousands of workers at the company’s UK plants, which includes the engine manufacturing facility at Hams Hall and the MINI plant in Cowley.
Unite said it intended to fight the plans ‘tooth-and-claw’.
In a pre-emptive move the union has held talks with pension committees and shops stewards at all the affected plants, which also include the MINI body panels plant at Swindon and the Rolls Royce site in Chichester, West Sussex.
The 60-day consultation period is due to begin today (September 29), following letters sent out by the company on Monday.
Unite is also planning to hold a consultative ballot to gauge members’ opinions during the consultation period in a show of unity to the car company.
Tony Murphy, Unite national officer for the automotive industries, said: “It is clear that our members will be losing thousands of pounds a year in retirement incomes, if this proposal is allowed to go ahead.
“This is plainly unacceptable and Unite will be fighting this proposal tooth-and-claw. It is becoming increasingly too easy for highly profitable multi-national companies to energetically salami-slice workers’ pensions in pursuit of even greater profits.
“BMW is blaming both the increase in national insurance payments and the cost of future liabilities as to why the final salary pension has become unaffordable, although, ironically, profits are still rising in the last two quarters.”
The company wants the staff to join its defined contribution (DC) scheme which relies on the performance of the stock market. This DC scheme already has about 2,000 members.
