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Unisys criticised by union over plan to scrap final-salary pension scheme

Antony Savvas
Monday 24 September 2007 03:22

Unisyshas drawn union criticism over its plan to scrap its final salary pension scheme in the UK.

Unite, Britain's biggest union, has condemned a proposal by Unisys to end further accruals to its defined benefit (final salary) pension scheme for UK staff.

The proposal, if implemented on 30 November as planned, will mean a big reduction in pension benefits for almost half of the company's employees, claims the union.

Unisys UK vice president and managing director Duncan Tait is currently conducting visits to Unisys sites to explain the firm's pension changes.

Unisys claims improvements to its defined contribution (money purchase) pension scheme will make it a "suitable and competitive alternative" to the final salary scheme.

But Peter Skyte, Unite national officer, said, "Whilst a number of companies have closed final salary schemes to future employees, very few have done so for existing members as well.

"This move can only damage employee morale and make it more difficult for Unisys to improve its lack-lustre performance in the UK. Unite believes the company's proposals are completely counter productive and we will do everything we can to resist them over the coming period."