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Another day another strike in the UK
It has been revealed that AA patrolman will strike for the first time in the company’s 105 year history amid plans by the company to restructure the final salary pension scheme. The Independent Democratic Union revealed that 57% of members who have voted so far have voted in favour of industrial action as a means of trying to protect their pension arrangements. Whether the company will come back with a counteroffer to avoid a potentially damaging strike remains to be seen but the problems with UK final salary pension schemes continue.
It is believed that the AA pension scheme has a deficit of around £190 million and the company has agreed to increase contributions from £13 million a year to £18 million a year. It is unclear whether the unions have timed this particular action to ensure that the UK government becomes involved and applies political pressure, or whether in fact this is a pure and simple industrial dispute.
Initially the AA was looking to introduce a cap of 1% per annum with regards to pensionable salary increases although this figure has now been increased to 2.5%. Whether there is some middle ground between the two parties remains to be seen but pension fund issues are set to become all the more prevalent in the months and years ahead.
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