British Gas engineers threaten strike over new pension plan

British Gas engineers threaten strike over new pension plan

	Published : Sat, 26 Nov 2005 18:35 By : Phil Bateman Print this Story

LONDON: Thousands of engineers at British Gas have voted for an industrial action over the sensitive issue of pensions and chances are that the strike could affect the Christmas season. The company said even November appears to be its busiest in terms of domestic calls.

Some 6,000 technicians of the Centrica subsidiary company, who install and maintain heating systems, have voted by four to one to walk out during the Christmas while nine to one said they would prefer disruptive action.

The GMB general union said representatives would be meeting next week to decide on the strike dates and a plan for a work-to-rule unless the company announced major concessions. The engineers are opposing the parent company's plans to deny its pension scheme to new entrants and instead offer a pension based on average salary.

GNB's national officer for the gas industry Brian Strutton said its members are determined to protect the pension rights to existing as well as future employees. He charged the company with going back on a deal it had concluded two years ago in which the engineers had agreed to increase their contributions to protect their retirement benefits.

British Gas said the action is uncalled for and unwarranted. Its director Dave Kendle said existing engineers will not be affected by the proposed changes. The long-term viability of the scheme will be protected and existing employees will not be losers, he contended.

He claimed that the pensions package for new employees is recognized by independent financial experts as one of the best in the market. "Around 75 per cent of the UK's final salary schemes are already closed to new members and we're facing a similar pensions challenge."

While efforts would be made to avoid the industrial action, he hoped the action will exclude emergency situations.

The strike threat comes at a time when there is apprehension about gas shortage in the country and a possible severe winter this year.

Centrica too said it was "disappointed" by the decision. A spokesman said the company had put in huge amount of money into the pension fund in recent years.