Unite warns BMW over pensions
Unite, Britain's biggest union, has today (24 July) warned BMW that it will not rule out an industrial action ballot if the company pushes ahead with its plans to close its final salary pension scheme to new entrants without proper negotiations and 'copper bottom' guarantees.
The formal consultation period began yesterday (23 July) when BMW wrote to all its staff across four plants at Oxford, Swindon, Hams Hall in Warwickshire and Goodwood in West Sussex that it is planning to close its final salary pension scheme to new entrants and replace it with a defined contribution scheme.
BMW employs around 5,000 workers across its four UK plants. In 2012 BMW made pre tax profits of €7.8 billion and described the year as the 'most successful' in its corporate history.
Unite national officer Roger Maddison said:
"The company and Unite have been in discussions for several months. However BMW has failed to convince the union that this change will not lead to a closure of the pension scheme to existing employees in the future. In our experience moves to close pension schemes to new entrants always end with an attack on existing employees' pensions. Workers fear that this move by BMW is just the thin end of the wedge.
"Unite will not stand idly by and allow a cash rich company, which is a major success story in the UK, threaten our members' futures. Strike action cannot be ruled out if the company insists on this change without securing a negotiated settlement with copper bottom guarantees."
