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Latest NewsEmployee relationsIndustrial action / strikesPay & benefitsPensions

Harrods denies union claim that it did not negotiate pension changes

by Mike Berry 14 Mar 2006
by Mike Berry 14 Mar 2006

Harrods has hit back at union claims that it is refusing to negotiate over the closure of its final salary pension scheme.

The Amicus union said it had put forward other proposals to cut the shortfall in the scheme, but the department store’s management had refused to negotiate.

The union said it will consult members this week on whether to hold a strike ballot.

But the company said it has engaged in full and proper consultation about its pension proposals.

“Each employee has been offered two opportunities to consult with the group about the proposed changes and Amicus has been involved throughout, even though the terms of the collective bargaining agreement do not extend to pension arrangements,” Harrods said in a statement.

A spokesperson added: “Allusions to possible industrial action are unfounded, premature and unhelpful – and certainly the Harrods Group will not be held to ransom by the threat of strike action which, whilst inconvenient, would not prevent the store from trading.”

Continuing with a final salary pension plan presents an “unacceptable future risk” for its employees and the company, the spokesperson said.

Pensions Watch

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Mike Berry

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