Company threatens sweeping changes to pension scheme
Unite the union is extremely concerned at Selex Galileo’s
proposals to change its pension scheme and the union argues that
these changes are unnecessary when viewed against significant
improvements in the business' performance.
Selex Galileo, formerly owned by BAE Systems – and now owned by
Italian defence giant Finmeccanica - has issued a statement to the
4,200 active scheme members announcing the intention to make
sweeping changes to the company pension scheme. Changes could
include increased contributions, reduced benefits and the closure
to new entrants of the remaining defined benefit scheme, the
100+.
Bernie Hamilton, Unite national officer, said: “This is
unacceptable and the company ought to reconsider its position.
Selex is a good business with a dedicated work force. The business
makes good profits and when it acquired this business in April 2005
the pension scheme was fully funded with no deficit.
“We understand the trading difficulties of today, but fail to
see how even in the down turn that this company is saying it can't
afford to continue without wholesale changes. If these proposals
are not withdrawn we will seek urgent talks with the company in
order to protect our members' interests.”
Unite has obtained the following performance figures from
Selex's UK company accounts. Profit before Interest and taxation,
was £76.4 million in 2007, an increase of at least 35 per cent on
the previous year. Early indications suggest that the 2008 results
are set to follow this trend. The salary of the top director has
trebled in three years, while members have had to live with below
inflation increases.
Unite has been successful in deferring any decision on the
closure of the 100+ scheme. The union does not accept that
employees should shoulder the burden of extra contributions,
increased risk and reduced benefits when Selex-Galileo and
Finmeccanica can clearly afford to pay the pension promise.
ENDS
For further information contact Brian Gallagher in the Unite
press office on 07957 995947 or Bernie Hamilton 07958 624664.
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