BBC workers to strike in pensions row

Thousands of BBC workers are to stage two 48-hour strikes in a row over pensions which threatens the corporation's coverage of the Conservative Party conference and the Government's comprehensive spending review, it was announced today.

Journalists, technicians and other broadcast staff will walk out on October 5 and 6, when the Conservative conference will be held, and again on October 19 and 20, the date of the spending review.

The action was announced by Bectu, the National Union of Journalists and Unite even though the BBC offered a new concession in an attempt to avert strikes.

Unions will consult with their members over the next few weeks before meeting on October 1 to decide whether to press ahead with the strikes.

Gerry Morrissey, Bectu's general secretary, said: "Whilst the BBC has heard and responded to some of our concerns, we are disappointed that the BBC's response fails to take account of the long-term implications of the worsening of pension terms for staff and their families.

"We believe that the BBC should be prepared to justify its position fully by agreeing to revisit pension benefits in April 2011, should official figures confirm that the total scheme deficit is less than £1.5 billion. That said, the latest proposals from the BBC warrant further detailed examination with members."

Jeremy Dear, NUJ general secretary said: "The BBC's continued insistence that staff pay much more for significantly worse benefits is unacceptable. We will be taking the union's case for fair pensions to a series of members' meetings across the UK.

"If the BBC fails to listen to the continued anger of staff at these unacceptable pensions changes, we will be left with no choice but to strike to stop the pensions robbery.

"Our strong and determined stand against the BBC's pensions robbery has resulted in today's proposals. We continue to believe they are unacceptable and unfair.

"We will consult with members, give the BBC the chance to address our ongoing concerns. If they fail to do so, they will face strike action."

Peter Skyte, Unite national official said: "While the new proposals retain a defined benefit pension for current employees, protect members' accrued pension entitlements and go some considerable way to continue the link between basic pay and pension increases, they fall short in some areas and require clarification in others.

"The BBC has a world-class workforce which deserves world-class pensions to provide for surety and security in retirement.

"We feel it necessary to consult further with our members on the BBC's latest proposals before determining a response and further action."

The broadcaster has offered to set up a new career average scheme for workers who belong to its defined benefit pension, who are concerned that the planned changes will reduce the value of their retirement income.

The BBC announced plans to overhaul its defined benefit schemes in June after discovering the deficit had ballooned from £470 million in 2008 to about £2 billion.

It gave existing members of the scheme the choice of either staying in it but having any salary increases used in pension calculations capped at 1% a year, or leaving the scheme and joining a new defined contribution one.

But members of the National Union of Journalists and the technicians' union Bectu voted to strike by more than 9-1 in protest at the "punitive" changes the group planned to make to the scheme.

The BBC said today that it had listened to members who expressed serious concerns about the 1% cap on pensionable pay rises, and it was offering to set up a new career average pension for them.

The benefits paid out by the new scheme would be lower than those paid out by a final salary one, as workers' pensions would be based on their average earnings while they were a member of it, rather than their pay immediately before they retire.

But there will be no cap on the level of people's pay that will be used in the calculations, meaning any pay rises or promotions would be reflected in their pension.

Members would accrue benefits at the rate of one-sixtieth of their salary each year, the same as under the current system, while pensions in payment would rise each year in line with the lower of consumer price inflation or 2.5%.

The BBC closed its final salary pension scheme to new members in 2006, when it introduced a career average scheme. The schemes have around 23,000 members, of whom 17,000 are still contributing.

Workers who opt for the new career average scheme, which will be known as CAB 2011, will be asked to contribute 7% of their pay - considerably higher than the 4% members of the current career average scheme pay, but lower than the 7.5% paid by members of the final salary scheme.

In an email to members, Mark Thompson, director-general of the BBC, said: "Pension reform at the BBC is inevitable.

"We have a large current deficit in our scheme and face long-term pressures which, without action now, would undermine the scheme and compromise the broader finances of the BBC."

He added that while CAB 2011 was not a "panacea", it did go a "significant way" to addressing the concerns expressed during the consultation.

The consultation on the changes to the scheme had been due to finish at the end of this month, but the BBC has now extended it until the middle of November.

Source:-
http://www.independent.co.uk/news/media/tv-radio/bbc-workers-to-strike-in-pensio...

BBC unions set strike dates over pension changes

The BBC's main unions have announced strike dates in a dispute over proposed changes to the corporation's pension schemes.

Dates for a strike have been set for 5 and 6 October, coinciding with the Conservative Party Conference.

Members of Bectu, the NUJ and Unite will first be consulted on the latest proposal from the BBC, which was presented earlier on Monday.

If this is also unacceptable to the membership, the strikes will go ahead.

Further action is scheduled for 19 and 20 October, which coincides with the government's Comprehensive Spending Review.

The developments follow formal discussions with the BBC about the latest plans to cut the pension deficit.

The BBC said in a statement: "We are disappointed that the unions have announced dates for industrial action.

"We believe our pension proposals address concerns raised by staff and that they should now have the opportunity to fully consider and explore them within the context of an ongoing consultation rather than the threat of a strike."

Greater contribution
Under the new plan offered to staff, pensions will be based on average pay over a career, and will therefore reflect fully any future pay rises. The original proposal allows for pensionable pay to rise by a maximum of 1% a year, regardless of changes in earnings.

However, employees will have to work to the age of 65 rather than 60.

They will also have to put a greater proportion of their salary into a pension pot.

Leaders of the three unions said the new proposals, although an improvement on the previous one, were still not good enough.

An e-mail to be sent to members of the NUJ on Tuesday said the union did not believe the BBC had made a sufficient case for making changes to the current pension arrangements.

It questions the BBC's assessment of the pension deficit, saying: "We are deeply sceptical of the BBC's figures."

Deficit
In June, the BBC announced plans to overhaul its pension scheme to try to tackle an estimated £2bn deficit.

The corporation said the changes were essential to tackle the ballooning deficit in the pension scheme, which stood at £470m two years ago.

These proposals include imposing a cap of 1% a year on the amount by which pensionable salaries of existing members could grow.

Alternatively, they could leave the existing defined benefit schemes and join a new defined contribution scheme, which is also being offered to new recruits.

Earlier this month, it was announced that BBC staff members had voted in favour of strike action in response to these plans.

Bectu and the National Union of Journalists said more than 90% of members had voted for a walkout. But the unions postponed the decision on whether to strike for two weeks while it discussed alternative proposals with the BBC.

'No panacea'
The fresh plans, which BBC director general Mark Thompson set out in an e-mail to staff on Monday, suggest adding an extra option of a pension based on a career average of salary.

Employees could leave the three defined benefit schemes - two final-salary versions and an existing career average section - and join the so-called CAB 2011 scheme.

Its benefits would be based on average pay from joining the new section until the end of working for the BBC. There would be no cap on how far this average pay could grow if members received pay rises or were promoted.

However, these employees would have to pay higher contributions than those in the current career-average (CAB) scheme, which is due to close to new members. Contributions will be 7% compared with 4% in the current CAB scheme.

Pension would accrue at a rate of 1.67% of salary per year, and members would see their pensions increase each year at the lower of the rise in the Consumer Prices Index or 2.5%.

"It is not a panacea, but in the terms I have set out above it is affordable, and I believe it goes a significant way to addressing the concerns you've expressed to us during the consultation," Mr Thompson said.



Source:- BBC News

http://www.bbc.co.uk/news/business-11281410