Ntl: faces union action over pensions

BECTU members at transmission company Ntl: may take strike action to protect their final salary pension scheme.

The company has refused to promise that staff pension entitlements will remain the same if, as planned, Ntl's Tower and Sites business is sold to a new owner for up to £1.2 billion.

Existing staff, 500 of whom belong to final salary pension schemes set up when the defunct Independent Broadcasting Authority sold off its TV and radio transmitter chain, have been warned that Ntl: will not demand that bidders for the company should include an equivalent pension scheme in their financial plans. A further 431 staff are in a money-purchase pension scheme which receives contributions from Ntl.

At a meeting with company managers, BECTU was told that current pension scheme members would be come "deferred pensioners" when a new owner took over, effectively meaning that their benefits would be frozen at that point in time.

Ntl confirmed that the company would continue paying into the funds until current deficits had been erased, but staff would not accrue any further benefits, instead having to rely for pension cover on their new employer.

"We asked the company to write into the tender document a requirement that any prospective purchaser would guarantee that a mirror image defined benefit pension scheme is provided as a condition of sale", said BECTU National Officer David Beevers.

"This they have refused to do. We cannot allow a sale to go through, which could mean many of our members may suffer severe detriment in respect of their pensions."

"BECTU has now registered a dispute following the company's refusal to guarantee current pension provisions, should the business be sold", said Beevers.

Other terms and conditions would be protected by TUPE rules if Ntl: is sold, preventing any contractual changes connected with the sale, but pension rights are not covered by the regulations.

Although Ntl: hopes to sell its Broadcast business by the end of the year, no buyer has yet been declared, leaving the company's 1200 employees in the dark. They provide transmission services to ITV, Channel 4, 5, Classic FM local independent Radio and many emergency services including the Metropolitan Police.

The Ntl: sale follows on a deal ealier this year in which Crown Castle International's transmitter business was sold for more than £1 billion to National Grid Transco.