'Betrayed' Barclays workers to vote on strike

Friday 17th July 2009

Proposed changes to pensions at Barclays will see workers balloted on potential strike action, it has been announced.

Earlier this month, Barclays announced it was proposing to drop its final salary pension scheme in a move that will affect 18,000 members of staff.

The fund as of last September had a deficit of £2.2 billion.

The union Unite – which represents 25,000 Barclays workers – will hold a ballot next month for a September strike, which it claims would "significantly impact" services to customers.

Derek Simpson, Unite joint general secretary, said: "It is unacceptable that Barclays are proposing this unilateral change to workers' pensions.

"Unite members will not stand by as their employer rides roughshod over their retirement security."

He added staff considered Barclays' pension plans as a betrayal.

The Barclays final salary scheme was closed to new members of staff in 1997, and under the plans existing members will see their future pensions switched to defined contribution schemes.

Existing pots and benefits will be frozen.

Barclays' pension scheme covers a total of 247,000 people – including 57,000 current employees, 51,000 pensioners and 139,000 people who have left the firm but are not drawing their pension yet.

Mr Simpson said the strike ballot would send out a message to all employers that the union "will not accept businesses using the economic downturn as a means to erode the important terms and conditions of our members".

"Unite has proposed viable alternatives to Barclays in order to make the cost savings they argue are essential for the pension scheme to be viable."

He added: "The company has failed to engage with the union on these suggestions. We would urge them to go back to the drawing board in order to avert damaging strike action."

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