Union anger over pensions
Co-op workers have called for a strike ballot over plans to end its final salary pension scheme.

Transport and General Workers' Union (T&G) shop stewards, representing about 1,000 Co-op drivers and warehouse workers, agreed yesterday to seek formal authority for the vote.

T&G national secretary for transport Ron Webb said: 'This strong response to Co-op should come as no surprise - we warned Co-op that its plans to axe the final salary pension scheme would be unpopular, and this is the proof.'

Co-op has said it intends to implement a career average scheme from April.

Co-operative group secretary Nick Eyre said: 'This is a disappointing response from the T&G at a time when all UK pension funds are facing massive increases in both pension costs and associated risks that we have sought to address in a measured and appropriate way.

'While overall the three pension funds are not in deficit, they are not immune to these cost pressures. It is only by continued careful and prudent management going forward that we can maintain a quality-defined benefit scheme.

'Since we announced details of the scheme, independent pension analysts and commentators have quickly recognised both the security and value it offers to our employees over inferior defined contribution schemes.'

Webb said he understood that Co-op's scheme was not in deficit, with the majority of the fund's investments in the traditionally more secure bonds market. He added that, on this basis, the reasons given for the drastic move seemed to have 'shaky foundations'.

T&G stressed that the announcement was the first step in a consultation process.