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Thursday, 7 February, 2002, 18:16 GMT
Union fury over pension review
Iceland logo
Union says it will oppose Iceland's pension plans
There has been an angry union response to Deeside-based food retailer Iceland's review of pension arrangements - which could affect over 4,000 workers.

A decision on whether or not the firm should end a pension scheme, which is linked to workers final salary, is currently under discussion.

The company claims the scheme is expensive to maintain and absorbs over 25% of the group's profits.

However, the Transport and General Workers' Union (T&G) in north Wales has said it will "vigorously oppose the proposals".


This decision will create a de-motivated workforce with no incentive to deliver the best quality services for Iceland

Mike O'Leary, T&G

The union says Iceland's plans would affect 4,400 workers who signed up to the company pension scheme prior to 1997.

T&G Regional Industrial Organiser, Mike O'Leary, said the union will "vigorously oppose the proposals and leave no stone unturned in an effort to change the company's position."

Mr O'Leary has written to the chief executive of Iceland to outline his concerns.

He said: "Any downfall in the present value of the company is a direct result of the existing management and they must shoulder the responsibility for that situation.

No decision

"We have pledged full support to the company to turn the business round, but not at the expense of the members' final-salary pension scheme."

In his letter Mr O'Leary said: "The decision you have arrived at will have no adverse effect on your pension and I am in no doubt that senior managers and yourself are still having your pension contributions paid into investment companies.

"This decision will create a de-motivated workforce with no incentive to deliver the best quality services for Iceland."

However, a spokesman for Iceland said that they were holding talks with trustees but they insisted that no final decision had been made.

The company said they would offer alternative pension arrangements to those affected by the decision and they intended to protect benefits earned to date.

The T&G has said it plans to press Iceland for a meeting to discuss the situation and head off calls from some of its members for further action.


More news from north east Wales
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