04 October 2007
The electronics group Siemens could face strike action from
employees over plans to close its final salary pension scheme to
all members. Unite, Britain's largest union, will begin a formal
ballot soon. Over 80% of its members voted in favour of industrial
action in a consultative ballot. Peter Skyte, national officer with
Unite, remarked: "Siemens is a highly profitable company that can
well afford to continue the final salary pension arrangements. The
company has refused to consider any of the proposals we have put
forward to address pension funding issues in over twelve months of
talks. The closing of the final salary schemes will cost its hard
working members many thousands of pounds in retirement and will
transfer the risk in providing pensions from one of the world's
largest blue chip companies to individual employees. This is not
only an attack on thousands of Siemens employees but on the state
which will have to bear the burden of people retiring without
adequate pension provision."
Siemens is one of the few large employers to not just withdraw a
final salary scheme for new employees but current employees also.
THe changes, if enforced, would come into effect in January next
year and affect around 6,000 of the 20,000 workforce.
