Retail trade union Usdaw has today been advised by supermarket
giant Morrisons that they will proceed with their original
proposals to reform the pension scheme for hourly-paid employees
after the company refused to adopt any of the union’s
alternatives.
Morrisons will now proceed to change the pension contributions
policy: Currently 5% from the employer and 3% from the employee;
to 3% from the employer and 5% from the employee. There will be a
transitional period of 4% each. Morrisons will also shortly
withdraw the option for hourly paid employees to step up to a
matching 5% contribution.
Alongside the pension changes the company has decided to reduce
life cover, again for hourly paid employees only and end the
bonus paid to all employees after 5, 10, 15 and 20 years’
service, only retaining the 25-year award.
The company claims they are continuing to invest in staff in
other ways and have announced improvements to the colleague
discount, maternity pay and adoption pay, neonatal leave,
paternity leave, flexible working, along with new fertility leave
and carers’ leave policies.
Darren Matthews – Usdaw National Officer
says: “After a series of consultation meetings with
Morrisons, it is deeply regrettable that they are pressing ahead
with proposals to seriously reduce the terms of the pension
scheme. The company claims that these changes are due to upcoming
Government reforms, despite the fact that there has been no
actual timetable announced for these changes. As such we do not
believe that Morrisons need to make these changes and we are not
aware of any other retailers who are looking at similar
reforms.
“While Morrisons are making some minor improvements to other
staff benefits, the loss of the Long Service Award on every fifth
anniversary will negatively impact thousands of Morrisons staff.
This is a change that we were neither consulted on nor advised of
ahead of the announcement.
“We are angry and disappointed that Morrisons has not accepted
any of our counter proposals and we will be looking at every
measure available to us to persuade management to review their
position and come back with a fairer offer.”
