Unite the Union

Unite the Union

September 24, 2007 12:04 ET

Unite condemns Unisys scrapping of final salary pension scheme

LONDON, UNITED KINGDOM--(Marketwire - Sept. 24, 2007) - Unite, Britain's biggest union, has condemned a proposal by Unisys Ltd to end further accruals to its defined benefit (final salary) pension scheme for its UK staff.

The proposal, if implemented as planned on 30th November, will effectively end final salary pensions in the IT service provider and will mean a big reduction in pension benefits for almost half of the Company's employees.

Unite, which has substantial membership in Unisys Ltd and its subsidiaries in the UK, has described as 'poppycock' a Company claim that minor improvements to its defined contribution (money purchase) pension scheme will make it a 'suitable and competitive alternative' to the final salary scheme.

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 over the coming period.

"Unite believes the Company's proposals are completely counter-productive and we will do everything we can to resist them over the coming period."

Richard Lynch, Unite Negotiating Officer, added:
"This attack on the final salary scheme has caused uproar amongst Unisys employees, who have been seriously demoralised by minimal or zero pay increases and heavy job cuts over recent years.

"They feel seriously let down by the Company's decision and are unlikely to be convinced by UK Vice President and Managing Director, Duncan Tait, who is making 'roadshow' visits to all UK sites between now and 1st October in an attempt to sell the unpopular proposal."

Contact Information

  • Peter Skyte
    07768 931 302
    Richard Lynch (Negotiating Officer)
    07734 683 828
    Unite Press Office
    Ashraf Choudhury
    020 7420 8914