Further strike action at Royal Mail could follow (UK)
Royal Mail has announced its intention to follow through on on its proposed changes to Postal Workers pensions which could see further strike action by postal workers.
The controversal move would mean raising the retirement age from 60 to 65 after 2010. The present pension scheme would, under Royal Mail’s proposals, cease from the 1st April 2008. The move is being communicated to its workforce by letter.
The CWU is said to be ‘disappointed’ by the move and made it clear that it was not willing to accept the plan without the agreement of CWU members.
From the 1st April, existing pensions will be changed to a ‘career salary defined benefit scheme’ meaning that workers pension benefits will be calculated on the basis of actual pensionable earnings in each given year. The calculation would also be uprated by inflation, capped at 5%. Employee contribution rates will remain unchanged.
Also from the 1st April, new starters at Royal Mail, will be offered a new, defined contribution scheme based on a tiered employee/employer contribution rate although eligibility to join the scheme will not become effective until the employee has been with Royal Mail for 12 months anyway.
The Postal Executive Committee is to meet on Monday to discuss its next move, the likely outcome of which will be a formal ballot. If CWU members reject the proposal, industrial action could soon follow, plunging Royal Mail into another period of strike action.
Royal Mail has announced its intention to follow through on on its proposed changes to Postal Workers pensions which could see further strike action by postal workers.
The controversal move would mean raising the retirement age from 60 to 65 after 2010. The present pension scheme would, under Royal Mail’s proposals, cease from the 1st April 2008. The move is being communicated to its workforce by letter.
The CWU is said to be ‘disappointed’ by the move and made it clear that it was not willing to accept the plan without the agreement of CWU members.
From the 1st April, existing pensions will be changed to a ‘career salary defined benefit scheme’ meaning that workers pension benefits will be calculated on the basis of actual pensionable earnings in each given year. The calculation would also be uprated by inflation, capped at 5%. Employee contribution rates will remain unchanged.
Also from the 1st April, new starters at Royal Mail, will be offered a new, defined contribution scheme based on a tiered employee/employer contribution rate although eligibility to join the scheme will not become effective until the employee has been with Royal Mail for 12 months anyway.
The Postal Executive Committee is to meet on Monday to discuss its next move, the likely outcome of which will be a formal ballot. If CWU members reject the proposal, industrial action could soon follow, plunging Royal Mail into another period of strike action.
