Pensions blow at Network Rail
THE threat of industrial action hung over Network Rail today after it told staff it is to become the latest major British business to shut its final-salary pension scheme.
The Railways Pension Scheme, covering 15,000 workers, will close to new entrants from April. The move to a defined-contribution plan immediately sparked a warning of industrial unrest from union leader Bob Crow.
He said: ?The private sector has bled billions of pounds out of the railway industry and now our members are being expected to pay for it.‘
Network Rail's move, designed to help plug a £200m hole in a scheme to which it last year had to double its contributions, comes a day after Rolls-Royce, under union pressure, reversed a move to dilute its final-salary scheme.
A Network Rail spokesman said: ?Around 80% of companies in the UK have closed their schemes. We are doing this not to save money but to protect the position of our current employees.‘
It is to recruit 18,000 staff after deciding to take all maintenance work in-house. They will retain current pension rights or be invited to join the new scheme.
