Unite the Union

Unite the Union

September 23, 2007 19:01 ET

The Great Mail Robbery

LONDON, UNITED KINGDOM--(Marketwire - Sept. 24, 2007) -

Embargoed until: 24th September 2007

Unite union, representing 12,000 Royal Mail managers will warn Royal Mail that it could face strike action over pensions.

Royal Mail is close to formally tabling its proposals for pensions reform. In a letter sent to the union's senior representatives from Unite, the union describes one of the possible proposals as " the great mail robbery". It has been estimated that Royal Mail could reap GBP 1.5bn from just one of the proposed changes.

Unite will meet with Royal Mail on Moday 24th September to discuss Royal Mail's proposals to change the scheme. The union anticipates that during next week Royal Mail will inform employee's of the changes to their pension scheme.

One of the expected proposals is to 'bank" the current benefits, which could cost the members of the scheme up to GBP 1.5 billion. That's GBP 1.5 billion that would have been paid out in the future to members and their dependants.

The union believes the proposals could include;

- Closing the scheme to new employees.
- Raising the normal retirement age to 65 in 2010.
- From 1 April 2008 replace the current final salary pension schemes with career average schemes.
- "Banking" current benefits (past service benefits) and indexing them to RPI or 5%.

Unite National Officer, Paul Reuter says,

"We call upon Royal Mail to honour their commitment to preserve the past service benefits that have been built up and paid for by our members.

We also call upon Adam Crozier to honour his commitment given on 7 February 2007 to safeguard the final salary schemes going forward."

"Failure by Royal Mail to respond positively will leave Unite with no option other than to ballot its' members for strike action."

Contact Information

  • Ciaran Naidoo
    07768 931 315