lord bhattacharyaAn initially sympathetic response to Lord Bhattacharyya’s description of the rejected JLR pay award as an apparent return to the “bad old days” of industrial relations, was quickly dispelled.  This, due to reading about the management proposals to make changes to the final salary scheme agreed with the workforce two years ago, including £240 million worth of pension cuts.

Jon Griffin quoted Roger Maddison, the Unite national officer leading the stalled pay negotiations: “There are people who have worked for 30 years in a car factory, have paid into the pension scheme and they should be able to rely on that pension to fund their retirement”.

UNITE points out that as the company is making £10 million profit a day, it is no surprise that the workforce is angered by pension cuts and a pay offer that falls short in recognising their role in that success.

ros altmannAccomplished economist Ros Altmann, a governor of the LSE and the Pensions Policy Institute, points out that most traditional final salary pension schemes have now closed and replacement money purchase arrangements are not delivering good pensions.

As interest rates and annuity rates have plummeted, many new retirees are finding their private pensions paying far less than they expected due to stock market falls.

UNITE would be failing in its duty if it acquiesced in cuts to the final salary scheme agreed with the workforce two years ago.

More on pensions in Political Concern.