Unite, Britain’s biggest union, has warned BMW that it may take industrial action ballot if the company pushes ahead with its plans to close its final salary pension scheme to new entrants.
The union wants the company, which has four factories in the UK including BMW engine and Mini and Rolls-Royce assembly plants, to enter into “proper negotiations” and provide certain guarantees.
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BMW has told employees that it is planning to close its final salary pension scheme to new entrants and replace it with a defined contribution scheme. The company employs around 5,000 workers across its four UK plants.
Unite national officer Roger Maddison said that despite discussions in recent months “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”.
He added: “In our experience moves to close pension schemes to new entrants always end with an attack on existing employees’ pensions. Unite will not stand 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.”
