Utilities workers set to vote on pension cut strike

Michael Klimes
clock

Three unions are prepared to ballot 1200 members of 1600 workers at Northumbrian Water and Essex and Suffolk Water over proposals to axe the company's final salary scheme.

The ballot for members of GMB, Unite and Unison will commence on 18 September after notice is served on 11 September.

Northumbrian Water has been in consultation with workers over plans to change its final salary scheme to a career average scheme since January this year.

GMB organiser Maxine Bartholomew told PP the union was "ready to press the red button" on the ballot on Friday.

She added: "Throughout eight months of consultation, Northumbrian Water has consistently failed to demonstrate the existing defined benefit pension scheme is unaffordable. Northumbrian Water remains a highly profitable company which generated an operating profit of £384.3mn for the 15-month period ending March 2015."

The company said the final salary scheme was unsustainable. It will contribute 19.5% and members will add 8% to the new Career Average Revalued Earnings (CARE) scheme.

The GMB said a formal ballot for industrial action would take place after consultation has concluded on 10 September.

Earlier this year a strike by Tata Steel workers was called off after the firm agreed to keep its final salary scheme open in exchange for cost-cutting measures while a dispute at Nestle is continuing

More on Defined Benefit

Aon predicts further rise in UK BPA market for 2025

Aon predicts further rise in UK BPA market for 2025

Consultancy predicts total volume of BPA business in 2024 to be between £45bn and £50bn

Jasmine Urquhart
clock 28 January 2025 • 2 min read
Average time to buyout falls to 4.6 years, Barnett Waddingham finds

Average time to buyout falls to 4.6 years, Barnett Waddingham finds

Barnett Waddingham End Gauge Index measures aggregate surplus at £63bn

Jasmine Urquhart
clock 22 January 2025 • 1 min read
Average DB transfer complainant to receive no compensation

Average DB transfer complainant to receive no compensation

Broadstone’s DB Redress Tracker shows typical redress compensation continues to fall

Jasmine Urquhart
clock 09 January 2025 • 1 min read
Trustpilot