Rolls Royce strike threat on pensions

Engineering giant Rolls-Royce is facing the threat of industrial action over pensions.

Thousands of workers at several factories across the country will vote on whether to strike in protest at plans to "slash" their pensions.

Amicus said the firm, which is facing a £1 billion pension deficit, is asking its employees to accept reduced benefits.

Cuts totalling £800 million are being proposed, said the union. The company, however, said it was looking to make cuts of £80 million a year.

Amicus general secretary Derek Simpson added: "Rolls-Royce is not treating its workforce in a way that's commensurate with their levels of loyalty and skill.

"Rolls-Royce pension scheme members are prepared to pay increased contributions to ensure they have a fair and living wage in retirement but the company must pay more to reduce the scale of these draconian cuts to their employees pensions."

Workers from plants including Derby, Sunderland, Bristol and East Kilbride will vote over the next few weeks on whether to strike.

Rolls-Royce said it was proposing to increase its contribution from £60 million to £90 million a year.

"Having paid in more than most employers and seen the money invested successfully, the company has reached the conclusion that a benefit structure which still leaves the fund with such a substantial deficit is unsustainable."

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