Retirement benefits slashed at the Royal Bank of Scotland
25th August 2009
Unite, Britain's biggest union, has today described RBS' planned
cuts to its pension scheme as a 'body blow' to its 60,000
staff.
RBS today (25th August) announced changes to the group's defined
benefits final salary pension scheme. Pensionable future increases
in salary will be limited annually to 2 per cent or inflation
(CPI), whichever is lower.
The union's senior representatives at the bank will meet this
Thursday (27th August) to decide the most appropriate course of
action to take in response to this announcement.
Rob MacGregor, Unite national officer, said: "This is a body
blow to tens of thousands of staff working at RBS. The company
intends to cap pensionable future pay rises and promotions at 2 per
cent which will erode workers' pensions over time.
"Unite will support its members in any action they choose to
take to defend their pensions. The union will be meeting again with
RBS and we expect there to be meaningful negotiations over these
changes.
"Against the backdrop of Sir Fred Goodwin's bumper pension these
planned changes add insult to injury to the workers paying the
price for a crisis for which they hold no responsibility.
"RBS staff, who already face great uncertainty in the face of
major job losses, now face a future with severely reduced
retirement benefits.
The company is also proposing to reduce the severance terms for
those workers over 50 who choose to take an immediate pension.
ENDS
Contact: Ciaran Naidoo on 07768 931 315
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