- Morrisons is planning to fleece tens of thousands of workers
by hiking employee pension contributions while slashing its own
contributions
Unite is preparing a challenge against Morrisons supermarket
chain which is planning to profiteer by attacking the pensions of
tens of thousands of hourly paid workers.
Unite represents 1,000 warehouse workers in Cheshire and
Wakefield. The union is organising briefings with members in the
coming weeks to expose the attacks and seek a mandate for
action.
Morrisons supermarket chain announced a proposal to cut their own
pension contributions over the next few years while increasing
the pensions contributions of its hourly paid employees.
Meanwhile senior managers and directors who are not hourly paid
will not be affected by these proposals. Unite is demanding
Morrisons’s withdraw the proposals.
This is blatant profiteering in the supermarket sector as
Morrisons is in profit and there are surpluses in all the
supermarket’s pension schemes.
The proposal from Morrisons is to cut its current five per cent
(employer) pension contributions to three per cent and shift the
burden by increasing the employee pension contributions from
three per cent to five per cent. Unite estimates the company will
save up to £10 million a year as a result (see notes to editors).
The company claims the rationale for doing this is a result of
government legislation which has not even been introduced yet.
The governments is proposing to extend rights under automatic
enrolment pension schemes in the Pensions Bill (see notes to
editors).
Unite general secretary, Sharon Graham said:
“Pensions villain Morrisons is planning
to
fleeceworkers by hiking
their pension contributions while slashing its own
contributions to the
scheme. This
is blatant
profiteering and
a disgraceful new low for this well-known
supermarket.
“The pension schemes are in
surplus and the company is in profit, there is no justification
for this attack. Unite will support
its members
in whatever action they choose to take and strike action is a
distinct
possibility.”
On June 27, 2023, David Potts, outgoing Morrisons CEO, gave
evidence to the trade and business select committee in which he
stated, “We are acutely aware of the pressure that
many millions of ordinary people have come under as a result of
this cost of living crisis and in particular by food
inflation”. Despite this the company is now
intending to plunge their own workers into pension poverty.
Unite national officer, Adrian Jones said: “Morrisons
is wrongly claiming it needs to make cuts due to the government
changing the rules on pension contributions. This attack on
workers’ deferred pay is all about increasing profits. Unite will
stand by its members who choose to fight these attacks on pay and
benefits.”
ENDS
Notes to editors
Morrisons’ pensions proposals.
- Stage 1 - move to four per cent company and four per cent
colleague contributions from Friday 8th March 2024 payday, and
each subsequent payday thereafter
- Stage 2 - move to three per cent company and five per cent
colleague contributions from Friday 7th March 2025 payday, and
each subsequent payday thereafter
- Stage 3 - implement the Government guidance to automatic
enrolment changes as and when introduced by legislation.
What does the government’s auto enrolment proposals
mean?
- If you’re aged 18 to 22, you’ll be automatically enrolled
into a pension by your employer
- Your employer will pay a minimum of three per cent of your
salary a year into a pension on any earnings you make up to
£50,270
- There will no longer be a lower earnings limit of £6,240.
