Sunday, May 26, 2024

UK
Union says workers at Morrisons are being ‘fleeced’ by pension changes

“These unmerited changes to workers’ pensions will leave our members worse off every month."

 Yesterday
LEFT FOOT FORWARD

Following strikes at Asda and Amazon stores in recent months over pay and conditions, almost 1,000 staff at Morrisons warehouses in Cheshire and West Yorkshire are on a 72-hour strike over a row about a cut in company pensions.

At the start of this financial year, Morrisons moved to a new policy where it and its employees both paid 4 percent into the pension pot, instead of the previous 5 percent and 3 percent split.

Canteen staff, administrators, stock controllers, and cooks, who earn between £12 and £13 an hour, say that the supermarket’s plan to reduce how much they contribute to employees’ pensions will see them lose an average of £500 a year.

In January, Morrisons reported a jump in profits, as it delivered its sixth consecutive quarter of like-for-like improvement.

The trade union Unite, which represents Morrisons staff, says the supermarket has “refused to negotiate” over changes to the pensions and other perks of its members.

Sharon Graham, general secretary of Unite, accused the supermarket of “planning to fleece workers.

“These unmerited changes to workers’ pensions will leave our members worse off every month. Unite will not stand for such behaviour from any employer, let alone one like Morrisons who is raking in massive profits during a cost of living crisis,” said Graham

The supermarket said it would ultimately pay more into the pensions of workers due to the government’s planned changes to pension auto-enrolment rules. They also said that the dip in pension contributions would be more than offset by the offered pay rise of 9 percent.

Currently, staff who earn less than £10,000 a year are not automatically enrolled on a pension scheme and companies do not have to pay contributions on earnings below £6,240. The government has however said these limits will be ended, and all workers may have to be enrolled. But a timeframe for the new rules has not been set and the outcome of a consultation will not be reported until the autumn, which will then be considered by the new government.

The strike action at the Morrisons warehouses began at 5am on May 23 and will run until 5am on May 26.

Morrissons says they have made a number of new proposals to Unite, including a 9 percent pay award, a new service award scheme, and improvements to the planned future pension scheme changes.

“Disappointingly, Unite has chosen to reject these new proposals without putting them to its members, and instead are continuing with strike action at two out of our seven logistics sites, initially over three days,” said a company spokesperson.

Image credit: Creative Commons – Brad 28

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