Workers to strike over pension row

Jan 21 2008 by Richard Down, Liverpool Daily Post

WORKERS at a Liverpool branch of an aerospace company have decided to down tools in a dispute over pensions.

Staff at the Huyton-based plant, Goodrich Actuation Systems, will stage strike action on Monday, January 28, to protest at the closure of the firm’s final salary pension scheme to new workers.

Unite regional officer Andy Taylor last night said he was issuing notice of the action on owners, and has informed them there is a continuous overtime ban scheduled for next Friday.

The action will affect the majority of 200 workers on site, according to the union.

They will join members at Goodrich sites protesting at plants in Wolverhampton, Birmingham, and Hemel Hempstead who backed the industrial action by 2-1.

Out of the 1,189 staff who voted nationally, 66% have voted to take strike action.

They are furious the company, which currently has a $7bn order book, closed the final salary pension scheme to new entrants on December 1, 2007.

Unite said Goodrich had also made changes to existing members contributions and benefits including raising the contribution rates. Based on figures from March, 2006, the pensions deficit was £40m but 90% funded.

Mr Taylor said: “This is outrageous behaviour from an aerospace company which has a well-funded pension scheme and a healthy order book.

“Our members will not accept the company's decision to close the final salary pension scheme to new entrants, and are calling for water-tight assurances from Goodrich concerning the final salary scheme for existing members.”

Goodrich has taken a part pensions holiday for over five years, despite being advised to cease their pensions holiday in 2005 and increase their contributions to 16%.

The company chose to ignore the advice and has now closed the scheme, and is forcing the staff to foot a significant portion of the bill to fund the scheme.

The plant manufactures and supplies flight systems to all the major commercial and military aircraft builders.

The dispute is likely to have a serious knock-on effect on the whole aerospace industry, which relies on Goodrich's flight systems.

richarddown