ITN pension cut prompts strike ballot

Union members at news provider ITN are balloting for strike action to protect their pension rights.

At a meeting near ITN's London HQ today, November 30, members of BECTU and the NUJ called for a strike vote after hearing that the management's current proposals for pension changes were a final offer.

Negotiators had hoped that controversial plans to change pension benefits, including an increase in retirement age from 60 to 65, might be altered during top-level talks with the company at ACAS.

ITN, however, warned that no further concessions would be made by the company if the talks went ahead, and the ACAS summit was cancelled.

BECTU will be sending out voting papers to members on December 8, after the statutory 7 days' notice to the company. The ballot closes on December 22, leaving members free to take strike action from December 30 onwards.

Discussions on pensions have been underway at ITN for several months, with the company insisting it must make savings on its annual employer's contribution to its final-salary pension scheme.

Changes proposed in the "final offer" package are the increase in retirement age, a 2.5% cap on inflation increases that current staff will receive when they retire, and a reduction in the accrual rate from 1/50th to 1/60th for each year of service.

Managers proposed the changes after being warned by actuaries that the company's contribution to the pension scheme would need to rise to 21% of its payroll costs, from the current 14.8%. Staff contributions are planned to remain at 6% of salary.

Company contributions are likely to be kept near current levels if the changes go through, particularly the increase in retirement age which accounts for a saving of 6% of the annual paybill.

ITN has joined a long list of broadcasting industry employers who have moved to cut pension benefits - the BBC effectively closed its final-salary scheme to new staff in November, and ITV, with an estimated £300 million deficit in its fund, has warned that changes will have to be made to save money.