Workers strike over pension scheme closure
Up to 600 workers at two of Rhodia’s UK plants are striking today over the chemical company’s decision to close its final-salary pension scheme to new entrants.
Employees at the Oldbury plant in the West Midlands and at Widnes in Merseyside have claimed that the decision could jeopardise the long-term future of the current scheme.
GMB and Amicus members voted three to one in favour of the unprecedented industrial action, according to union officials.
Kevin Curran, GMB general secretary, said: “Their security in retirement is being put in jeopardy by the decisions being made by the company now. Rhodia have refused to have a proper debate on our members’ pensions and have left us with no option but to strike.”
Amicus added that the workers had been forced to “defend their own and future colleagues’ right to a living wage in retirement”.
Final-salary schemes offer more security to workers because they guarantee an agreed percentage of the salary on which an employee left the company, throughout their retirement.
As many as three-quarters of UK-based firms are thought to have closed such pension plans, preferring money-purchase schemes instead which move the risk of pension investment from the company to the individual workers.
The unions claim that Rhodia has enjoyed a partial pensions holiday, dropping its contributions from 18% to 14% over the last three years.
However, John Scott, operations director for Rhodia, today insisted that the company is committed to ensuring that all workers receive a good pension.
“The purpose of the current proposals that we’ve put forward is to protect the benefits that we’ve already promised to our existing workforce.
“We’ve put a lot of money into the pension scheme in the last few years to deal with the under-funding that has arisen from poor stockmarket performance and longer life expectancy.”
Further strike dates have been scheduled for August and September.
