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Latest NewsPay & benefitsPensions

Union wins pensions victory

by Personnel Today 23 Dec 2004
by Personnel Today 23 Dec 2004

The Transport and General Workers’ (T&G) union has won a victory on pensions for members at Birmingham Airport, averting the threat of the closure of the final salary scheme to new entrants.

As a result of the agreement, the final salary scheme will be open to new entrants after they have served for three years.

The company had threatened to increase scheme members’ contributions, but they will now remain at 5.5 per cent.

The T&G re-entered negotiations with airport employers following a ballot for industrial action, as union members were concerned about the viability of the scheme if the airport closed it to new entrants.

Members voted to accept the new offer, thus ending two years of negotiations and the threat of industrial action.

John Partridge, T&G regional organiser, said: “As a direct result of the campaign to oppose the company’s changes to the pension scheme, the scheme is safeguarded for the benefit of existing members and future members.

“It has taken two years’ negotiations and a strike threat, but the campaign shows that unions can play a crucial role in persuading employers to keep decent pensions provisions. Birmingham City Airport has bucked the trend and we commend them for it.”

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