Socialist Worker

BT workers will feel pinch

Issue No. 2126

Tens of thousands of telecom workers face having to work an extra five years before they can retire.

BT is discussing increasing both its retirement age and staff contributions to its pensions scheme.

The reason is the BT scheme’s deficit has soared from £5 billion to £16 billion in the past ten months.

The right wing press is up in arms over claims that the state will guarantee that BT pensioners are paid out regardless of any deficit.

Yet this guarantee only applies to the 250,000 workers who joined the scheme prior to BT’s privatisation by Margaret Thatcher in 1984.

The Daily Mail has no problem with the state bailing out the bankers. But it froths at the mouth when it comes to the government ensuring that workers get the money they are rightfully owed from their pension schemes.

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