United Utilities is facing the prospect of industrial action in a pensions dispute when the joint unions meet today to agree a joint response to United Utilities proposals to close its defined benefit pension scheme.
The issue was first discussed at the GMB National Water Forum which took place on 19th and 20th October in Sheffield when proposals for the closure of the United Utilities Defined Benefit Pension Scheme for active members as of 31 March 2016 were considered. The scheme was closed to new entrants in 2006.
The discussion at the GMB National Water Forum, which covers nearly 10,000 members in the water industry, means that it is “very likely” that the prospect for industrial action will move a step closer.
Eddie Parker, GMB regional officer, said :
“GMB met with senior representatives of the company on 16th October in order to commence consultation on pensions. The company proposes to move active Defined Benefit member’s to the existing UU Defined Contribution Pension Scheme on 1st April 2016. The accrued pension value as of 31st March 2016 will be protected in line with the relevant scheme rules.”
The GMB said the union have conveyed “their extreme disgust, dissatisfaction and concerns with these proposals.”
United Utilities have told the union that they intend to communicate to all impacted employees immediately and then begin a formal 60 day consultation beginning on 16th November.
Commenting on the potential strike at United Utilities, Eamon OHearn, lead officer for the Water Industry, said:
“Last week the NAO reported that water companies gained £840m from lower-than-forecast rates of interest and £410m from reduced corporation tax rates. The NAO report proves that water companies can't cry poverty as they seek to shift more costs and efficiencies onto the workforce.”
In a separate dispute over pensions, the GMB and Unite last week issued notice to Northumbrian Water that their members would start indefinite industrial action short of a strike from 4.30pm on Tuesday 20th October.
In a statement, the GMB said:
“The warning that there is little scope for further efficiency gains left in the industry will come as cold comfort to GMB members in Northumbrian Water or in United Utilities, and in the wider industry, who have seen their pensions attacked in order to drain profits out of the UK and into the hands of opaque holding companies.”
“Their raids on pensions and reductions in workforce numbers have drained profits out of the UK and even the NAO are saying there is little left to cut."
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