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No guarantee on Royal Mail pensions says Tory minister

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Issue 2594
Tory minister Guy Opperman said there was a long way to go for the Royal Mail pensions arrangement
Tory minister Guy Opperman said there was a ‘long way to go’ for the Royal Mail pensions arrangement

Tory minister Guy Opperman said last week that CWU union leaders and Royal Mail bosses have a “long way to go” before they can implement a pensions agreement.

Union leaders are encouraging Royal Mail workers to vote for a deal that will launch a new pension scheme for Royal Mail workers.

It would see bosses bring in a single Collective Defined Contribution (CDC) scheme.

Yet the government has not passed all the legislation needed to launch it. And Opperman said both parties had “a long way to go” before legislation is brought in.

A CDC pension scheme offers workers a set wage in retirement, but the amount paid out is still at the mercy of the stock market.

This would be an improvement for workers on a regular defined contribution scheme, who are not guaranteed a set wage. But it is worse for the 100,000 longer-serving workers on a Defined Benefit scheme that’s not linked to the market.

CWU leaders want members to vote in favour of the deal in a ballot starting next Monday and ending on 28 March. But workers shouldn’t vote for a deal that leaves many of them worse off and the future of their pensions insecure.

A huge vote to strike last year forced big concessions—showing that strikes are the way to defend pensions, pay and conditions.

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