Capita faces strike over pensions

CAPITA could be facing industrial action over changes to its pension scheme after union Unite launched a ballot of its members.

Staff represented by the union and working for the outsourcer started voting yesterday about the proposed changes, which would see around 3pc of workers transferred from the current defined benefit, or final salary, plan to a defined contribution scheme, where there are no guarantees over the level of income paid in retirement.

The union claimed the changes would result in some members of staff losing as much as 70pc of their retirement income.

Dominic Hook, national officer at Unite, said: “The disgraceful plans by Capita to slash the deferred pay that staff will get in retirement are utterly unacceptable.”

He added that the firm should “urgently rethink” the proposals in order to avoid a strike. Possible industrial action would affect Capita’s contracts with Prudential, Royal London, Friends Life, and its IT programmes.

Capita is the latest in a string of large companies hit by employee disquiet over changes to pensions, including Royal Mail.

A spokesman said: “We are in the minority of companies still offering a defined benefit pension plan to a small percentage of our overall employees.

“Following a thorough review of our pensions estate, we have recognised that this arrangement is not sustainable in the long-term.”

‘The disgraceful plans to slash the deferred pay staff will get in retirement are utterly unacceptable’