Strike threat over ITV pensions

BECTU, NUJ, and Amicus have promised to call a strike ballot if ITV closes its final salary pension scheme.

The threat came from a meeting in London on November 21, where the three ITV unions considered the company's plan to close its defined-benefit pension scheme to existing members, and transfer them into a less generous "career average" scheme.

Management hope to introduce pension changes from April 2007, and if industrial action takes place i the New Year, it is likely to hit a number of ITV's flagship programmes such asCoronation Street, Emmerdale and Parkinson.

ITV recently advised the unions that it wished to look at changes to its pension scheme including; replacing the final salary scheme with a career average scheme; changing the accrual rate from 50ths to 60ths; harmonising the retirement age at 63 (some staff have a retirement age of 60 and others 65, as a result of numerous ITV mergers); and, finally, increasing members' contributions.

Unions were told that the motive for cuts in pension benefits was that ITV wanted to reduce its employers' contribution, which currently averages at 28%, by as much as 10% of payroll costs.

Anger at the proposals has been fanned by rumours that the departing Chief Executive, Charles Allen, will pick up a pension of £500,000 a year when he leaves ITV in January 2007.

BECTU's Assistant General Secretary commented: "When our representatives met yesterday, they were extremely angry the company had decided to make such savage changes to their pension arrangements at a time when the company's profits are up and after a significant period of job-shedding through redundancies and outsourcing."

He added: "We are prepared to enter into meaningful negotiations with ITV, but we will not rubber-stamp its pension proposals and significantly worsen our members' employment package. We hope ITV will reflect on its proposals. However, if they persist, we will not be afraid to call our members out on strike."

ITV's move to reduce pension benefits follows on from a similar proposal under discussion between the unions and ITN, the network's news provider.