‘Tolls staff ripped off as firm’s pension pay-in cut’
AUNION has attacked the company that controls the two Severn bridges, accusing them of “ripping off” staff by cutting its pension contribution.
Severn River Crossing plc defended its decision to cut its pension contributions by £250,000, saying lower interest rates had led to an increase in the pension deficit which it was paying off before handing the bridges over to the state.
A regional official of Unite the Union said Severn River Crossing plc (SRC) had reduced its contributions to its employees’ pension scheme on the assumption that toll takings would dip in 2016.
In fact, traffic using the toll booths increased by 4% over the year, with turnover rising by 5.3% to £103.2m.
However, because of the incorrect prediction that takings would decline, staff had already agreed to a company proposal that reduced its pension contributions by £250,000.
Dave Gunter, a regional official of Unite, said: “Back in 2015, before I was involved personally, the company persuaded workers to accept a decrease in pension contributions because of the predicted reduction in toll takings.
“At the time, a series of questions and answers sent out by the company to employees included one which asked whether it would be possible to renegotiate the deal if the company did better than expected in 2016.
The answer said: ‘Yes, there is always an opportunity for an ongoing dialogue. If the position is better, the company may be able to share the benefits’.”
Mr Gunter said the company had not entered into such a dialogue: “Some of our members are extremely frustrated by the company’s attitude. They feel they have been shafted.
“The company appears to have taken the view that because there was a downturn in takings in 2017, that offsets the increase in toll revenue in 2016.
“But the difference between what was predicted and what the revenue actually was came out a lot less than the increase in 2016.”
According to SRC, traffic growth in 2017 was 1.1% against a prediction of 2%.
Mr Gunter said that in 2016 the average toll revenue per day had been £282,000.
He said: “While the company has provided us with some information, we haven’t got it all.
“What I can say is that this has left a nasty taste in the mouth at the time staff are about to be transferred to a new employer in the public sector, Highways England.
“The information came to our attention too late to do anything about it, and some of the workforce believe they have been ripped off.”
A spokesman for SRC said: “We are aware of the arguments that have been put to the workforce.
“The fact is that while there was an under-estimate of revenues in 2016, there was an over-estimate in 2017.
“We certainly don’t think we have acted unfairly towards our staff, and we have long had good relations with them and the unions.
“One of the consequences of low interest rates is a reduction in revenue for our pension fund, which has led to an increase in the pension deficit.
“Under the terms of our agreement, we committed to pay off whatever the pension deficit was at the time of handing the bridges back to the state.
“It was expected to be £3.6m but in fact was £5.3m.
“It’s been paid by the company and the pension fund is in good standing.”
While SRC’s workforce – which totals around 180 – will be transferred to Highways England on January 8, most expect to lose their jobs when tolls are scrapped.