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31/07/2013
DHL Employees Retirement Incomes Could Be Slashed
Nearly 20,000 DHL employees could see their retirement incomes slashed, if copper-bottomed pension guarantees are not in place, Unite, the country's largest union, has warned.
DHL, which employs 37,000 transport and logistics workers in the UK, is involved in complex pension talks, which, Unite believes, could see an eventual race to the bottom in pension provision that other big UK employers would ape.
Unite national officer for road transport, logistics and retail distribution Matt Draper warned that the union was prepared to ballot its members for industrial action in defence of their pensions.
The current DHL pension set up is:
• A final salary scheme, covering about 3,500, which the company wants to close at the end of year. Consultations are underway on this scheme to which the employer contributes about 12 per cent
• The Voyager defined contribution scheme, covering about 16,000, to which the employee contributes three to four per cent and the employer matches that figure
• The government's new auto-enrollment scheme, covering the rest of the workforce, with the employer contributions rising to three per cent.
Matt Draper said: "We are seeking copper-bottomed guarantees that the Voyager scheme will continue in its present form and that the auto-enrollment scheme won't become the pension scheme of choice by default.
"We are very concerned about the proposed final salary scheme's closure, as we see future retirement benefits being substantially diminished as a result for this section of the workforce. We want the scheme to continue for existing members.
"Ironically, DHL could find €2 billion for its German workforce as pension rules are tighter there – it is a shame that it can't do the same for its final salary scheme in the UK.
"DHL is a highly profitable company and we don't want to see it at the forefront of eroding retirement incomes in a race to the bottom that could act as Trojan Horse for other employers to follow in debasing pensions in the UK."
(CD/JP)
DHL, which employs 37,000 transport and logistics workers in the UK, is involved in complex pension talks, which, Unite believes, could see an eventual race to the bottom in pension provision that other big UK employers would ape.
Unite national officer for road transport, logistics and retail distribution Matt Draper warned that the union was prepared to ballot its members for industrial action in defence of their pensions.
The current DHL pension set up is:
• A final salary scheme, covering about 3,500, which the company wants to close at the end of year. Consultations are underway on this scheme to which the employer contributes about 12 per cent
• The Voyager defined contribution scheme, covering about 16,000, to which the employee contributes three to four per cent and the employer matches that figure
• The government's new auto-enrollment scheme, covering the rest of the workforce, with the employer contributions rising to three per cent.
Matt Draper said: "We are seeking copper-bottomed guarantees that the Voyager scheme will continue in its present form and that the auto-enrollment scheme won't become the pension scheme of choice by default.
"We are very concerned about the proposed final salary scheme's closure, as we see future retirement benefits being substantially diminished as a result for this section of the workforce. We want the scheme to continue for existing members.
"Ironically, DHL could find €2 billion for its German workforce as pension rules are tighter there – it is a shame that it can't do the same for its final salary scheme in the UK.
"DHL is a highly profitable company and we don't want to see it at the forefront of eroding retirement incomes in a race to the bottom that could act as Trojan Horse for other employers to follow in debasing pensions in the UK."
(CD/JP)
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