Aston Martin staff in strike threat over pension
UNION members at Midland sports car manufacturer Aston Martin are threatening strike action over changes to their company pension scheme.
Members of the Unite union have held a consultative ballot over potential industrial action which it said showed staff wanted to hold a full-scale strike vote in the new year.
The row centres on Aston Martin’s proposals to switch those staff who are currently on its defined benefit scheme to a defined contribution pension, which is used by the majority of its workforce and new starters, from the end of January.
Unite quotes its own pension experts as saying the changes could cost some members up to £100,000 over the course of their retirements.
A consultation period between the company and affected staff is due to close on December 17 and Unite is calling for this to be extended, something it says has so far been declined by the manufacturer.
Staff at Aston Martin’s head office in Gaydon and its plants in Wellesbourne in Warwickshire, Milton Keynes, Newport Pagnell and St Athan in South Wales took part in the consultative strike ballot.
Unite’s general secretary, Sharon Graham, said: “We will back our members at Aston Martin 100 per cent if they decide to take industrial action to defend their pensions and defeat this threat to their retirement incomes. These workers have done as asked and saved for their retirement but they have also worked hard to deliver improved profits for Aston Martin. There is, therefore, no case to be made for closing the defined benefit pension schemes, a move that robs our members of tens of thousands of pounds.
“Aston Martin’s workforce is now aware of the gross inadequacy of the defined contribution scheme by comparison and this will be a significant factor when we put forward our claim in the 2022 pay review.”
Aston Martin said in a statement: “As a responsible employer, Aston Martin has a duty to deliver financially sustainable pension arrangements for its circa 2,000 employees while managing its pension risks and underlying costs. Having completed a review of its future pension arrangements and, in line with many other UK employers, it is proposing changes to its defined benefit scheme affecting circa 400 employees.
“Should these changes occur, Aston Martin has outlined an attractive transition arrangement, including a one-off cash payment and equity in the company.
“This is in addition to supporting the defined benefit pension scheme to meet the cost of pension benefits already earned. Aston Martin remains in direct communication with the affected employees and their representatives regarding these changes and is unable to comment further at this time.”