BMW Finalises Final Pension Salary of 5,000 British Workers
Giant Car Maker BMW has switched to defined-contribution schemes and it intends to finalise the pension amounts its 5000 British workers would receive.
Workers union collective Unite vowed to fight ‘tooth and claw’ to reverse the decision by providing a justified argument.
Future contributions for its two defined-benefit pension schemes will be fixed by June 2017 as it moves to less-expensive defined-contribution pension schemes.
BMW had made pre-tax profits of about £7.8bn in 2015. However, it argues that the costs and risks associated with defined benefit pension schemes has “made it increasingly difficult and unaffordable for both members and companies.”
Unite union national officer for automotive industries said:
“This is plainly unacceptable, and Unite will be fighting this proposal tooth and claw. It is becoming increasingly too easy for highly profitable multinational companies to energetically salami-slice workers’ pensions in pursuit of even greater profits.”
He added: “BMW is blaming both the increase in national insurance payments and the cost of future liabilities as to why the final-salary pension has become unaffordable, though, ironically, profits are still rising in the last two quarters.”
A spokesman for BMW said: “BMW Group has always prided itself in providing excellent pensions for its staff, and wants to act now to protect future pension provision for all its staff and to help protect the cost competitiveness of the UK as a manufacturing base. The company is now consulting with its employee representative bodies on this proposal.”