BMW workers reject offer to end pensions dispute

Workers at three BMW plants in the UK have voted to reject a deal designed to end a long-running dispute over proposed changes to pensions

Members of the Unite union based at sites in Cowley and Swindon in southern England and Hams Hall in the West Midlands, turned down an offer by 56.6%.

BMW described the deal tabled as "fair". But the union – which did not recommend the offer – said it did not go far enough to address employees' concerns.

The company plans to link the value of a worker's pension to the pension fund's performance on the stock market, instead of final salary.

The changes would affect about 5,000 BMW employees in Britain, the union said, adding that some workers stand to lose up to £160,000 in their retirement income.

Workers have staged four walkouts so far, hitting engine, Mini and Rolls-Royce car production.

Three 24-hour strikes planned in May were suspended while staff considered the offer, which would see the closure of the German carmaker's final salary pension scheme and workers moved into a defined contribution scheme.

Unite national officer Fred Hanna said: "While Unite did not recommend the offer, as it would have different outcomes for different people and their pensions, it is clear that it did not go far enough or deal with the concerns many of our members have over BMW's pension plans.

"We would urge BMW bosses to reflect on the result and listen to the workforce by further engaging in meaningful talks with Unite."

A BMW spokesman said: "We are disappointed that Unite members have voted to reject the company's best offer designed to support employees during the proposed move to its new UK pension arrangements.

"We are now considering the implications of the ballot result and we will be meeting with the union in due course to discuss next steps.

"We believe the offer, which resulted from lengthy negotiations with the union since September last year, was fair.

"It was designed to improve competitiveness, which is in the long-term interests of all our employees in the future."