[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Thursday, 7 August, 2003, 18:56 GMT 19:56 UK
New strikes at chemical firm
Rhodia logo
The firm says it is committed to pensions for all current staff
More than 600 workers at a chemical firm have pledged to continue striking in a row over pensions.

The workers at Rhodia's operations in Widnes, Cheshire, and Oldbury, in the West Midlands, made the decision after negotiations with the firm at arbitration service Acas broke down.

Industrial action began last month over plans by the company to close its pension scheme to new entrants because it said it cannot afford to fund it.

On Thursday the workers said further strikes will now go ahead on 15-17 August and 5 September.

The unions involved - Amicus and the GMB - say the action is about defending the right of workers to a living wage in retirement.

If we carry on accepting open-ended pension commitments for new staff then we put the future of the company at risk
John Scott
Workers are angry about the decision by the French-owned firm after it enjoyed a partial pensions holiday, dropping its own contributions from 18% to 14%, since 2000.

Roger Lyons, joint general secretary of Amicus said: "It's regrettable that the company has failed to shift their position at all.

"Workers have not rushed in to their decision to strike but have exhausted all other options.

"They recognise that the closure of their pension scheme threatens the benefits of new employees coming into the company and is a nail in the coffin for their final salary scheme in the longer term."

'Wages risk'

Last month however, John Scott, Rhodia operations director, said the company was committed to a pension scheme for all its staff.

"That's why Rhodia has massively increased payments into the pension fund - to ensure we can protect the pension commitments made to current members of staff.

"We are paying one of the UK's highest contribution rates - 31% of salary - to honour the promises made to today's employees.

"If we carry on accepting open-ended pension commitments for new staff then we put the future of the company at risk and we won't be paying any wages, let alone any pensions, to new recruits."




RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific