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OnlyMe

Royal Mail Set To Close Its Final-salary Pensions To All Employees

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I predict a riot.

http://business.timesonline.co.uk/tol/busi...icle2518238.ece

From The Times

September 24, 2007

Royal Mail set to close its final-salary pensions to all employees

Christine Buckley, Industrial Editor

Royal Mail plans to close its final-salary pension scheme to all employees in a move that could plunge the business further into industrial turmoil.

The decision is expected to trigger strikes by thousands of postal managers, in addition to unrest among its 130,000 employees who are in dispute over pay and working arrangements.

Royal Mail is expected to write to employees soon to outline sweeping changes to the pension scheme, including raising the retirement age by five years.

Edited by OnlyMe

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I don't know why they ever privatised it, Royal Mail used to be the envy of the world. We had the mail trains, post office buses in the highlands....it was an institution that most people were proud of.

Posties are paid pretty badly and to take this away will simply cause more strikes and destroy yet another company final pension scheme.

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Seems certain to be trouble.

Wonder how Gordon will play it?

He better grab his chance whilst he's ahead in the polls or things could turn very nasty very quickly imo. ;)

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I don't know why they ever privatised it, Royal Mail used to be the envy of the world. We had the mail trains, post office buses in the highlands....it was an institution that most people were proud of.

Posties are paid pretty badly and to take this away will simply cause more strikes and destroy yet another company final pension scheme.

Even if they had not privatised it they would have had to bite the bullet on this sooner or later (and surely the Public Sector must follow shortly). Postmen are not that well paid but then the job is not arduous. This is one industry where there will be no shortage of takers if the Post Office are not able to complete the task (accepting the fact that if you live in a remote area you will have to pay more for your mail - there is no such thing as a free lunch in any aspect of service provision nowadays).

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to take this away will simply cause more strikes and destroy yet another company final pension scheme.

Haven't you sussed it yet - it's ALL in the scheme of things!!

Think about how we are made to suffer in traffic queues, stand for hrs on trains, M25 built dozens of lanes too narrow, collapse/dumbing down of education, raids on Pensions, no more 'jobs for life', constant introduction of 'Americanised' workplace systems, Interference in NHS with tiers of Obstructive Management, offshore support and billing services, counciltax inflation, waste on £1,000,000's of IT government/NHS contracts etc etc etc

Get the picture yet?

It's all designed to make your life HELL and steal what little freetime you and your friends and family have, away from you!

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Posties are paid pretty badly

Hmm not sure about that. Considering what the job involves I think they are paid pretty well actually.

I'm not a postie btw.

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Hmm not sure about that. Considering what the job involves I think they are paid pretty well actually.

I'm not a postie btw.

got to be up at before light 6 days a week and out in all weathers....no stress but it won't be easy work

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Guest Shedfish
got to be up at before light 6 days a week and out in all weathers....no stress but it won't be easy work

did it for 5 years.. it's not

Not good for THOSE postal votes. :ph34r:

what a delicious thought.

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So during 10 years of unprecedented economic growth, during a miracle economy. The fourth richest nation on planet earth under the labour party has bankrupt the pensions that have been setup and run smoothly for nearly a century?

Gordon Brown and New Labour are not in Government, they are demolition experts!!!!!

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But surely your pension is your home, prices only go up you know. Still got my final salary pension, was reduced in value by 10% this year. Only a matter of time before it goes completely. You will not need a pension because you will not be able to retire, simple really. Arbeite Macht Frei.

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On the face of it, this

In another controversial move, Royal Mail is to propose “banking” current benefits and linking them with RPI rather than salary levels. Unite, which represents 12,000 post managers, says that this change would cost pension scheme members £1.5 billion.

appears to be a bet that salaries will increase at least as fast as RPI. Risky, IMO -- though I suppose they can always close the RPI-linked scheme to all employees if it turns out to be disadvantageous...

Edited by huw

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I don't know why they ever privatised it

From wikipedia......

Historically, the General Post Office was a government department, which included — and still does — the Royal Mail delivery business; but it became The Post Office, a state-owned corporation, in 1969 and then a Public Limited Company wholly owned by HM Government in 2000

Unlike other former state monopolies such as The Stationery Office, British Gas and British Telecom, Royal Mail was not privatised in the 1980s and 1990s, but remains a public limited company wholly owned by the UK government. This was largely due to the successful campaigning of the Communication Workers Union on behalf of its postal members.

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Haven't you sussed it yet - it's ALL in the scheme of things!!

Think about how we are made to suffer in traffic queues, stand for hrs on trains, M25 built dozens of lanes too narrow, collapse/dumbing down of education, raids on Pensions, no more 'jobs for life', constant introduction of 'Americanised' workplace systems, Interference in NHS with tiers of Obstructive Management, offshore support and billing services, counciltax inflation, waste on £1,000,000's of IT government/NHS contracts etc etc etc

Get the picture yet?

It's all designed to make your life HELL and steal what little freetime you and your friends and family have, away from you!

For the most part I agree with you erranta.

This is all building up into serious trouble. Events of 2007 are becoming increasingly desperate and lie after lie after lie is revealing itself in the most profound manner. If things don't change very soon, chaos will breakout and I think it may get very nasty. The way things are going 2008 is going to be a year to remember moreso than 2007 I think. I believe we are living in extraordinary times that history will not forget. The divisions in society are getting to extreme levels, the media lie and spin everything and have become unreliable to point of not even reporting the news. Everyones to scared to lose their assets or admit their indebtedness as well as everyone being turned against eachother for not being a do-gooding, religious, lesbian, social worker with a BTL portfolio of eco homes that rides the bicycle to work and goes to the gym on weekends. WTF is going on!!!!!!!!!!!!!!!!!!!!!!!!!!!! :o:unsure: :angry: :unsure::blink:

Just remember who got us here when the chaos ensues...... <_<

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Hmm not sure about that. Considering what the job involves I think they are paid pretty well actually.

I'm not a postie btw.

I worked as a postman for a year and thought it was good pay and still enabled me to play in a band in the evenings.

With regards to the public sector final pension salary pension schemes they are just not sustainable and should all be closed imo.

The cost to the taxpayer is too great. If you do not believe this look at the great final salary pension schemes over the past which have all closed including Rolls Royce, WH Smith, Littlewoods, Debenhams, Harrods, BAA to name but a few. If these have not all closed they will be closing soon. 40% of companies since 2005 have closed their schemes according to the ACA (actuaries) and the reason is due to the huge costs involved to the employers.

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I worked as a postman for a year and thought it was good pay and still enabled me to play in a band in the evenings.

With regards to the public sector final pension salary pension schemes they are just not sustainable and should all be closed imo.

The cost to the taxpayer is too great. If you do not believe this look at the great final salary pension schemes over the past which have all closed including Rolls Royce, WH Smith, Littlewoods, Debenhams, Harrods, BAA to name but a few. If these have not all closed they will be closing soon. 40% of companies since 2005 have closed their schemes according to the ACA (actuaries) and the reason is due to the huge costs involved to the employers.

Most of these employers are making huge profits. FSP are going as it enables corps to make more money at the expense of working people i.e. it's about the transference of even more wealth from employees to shareholders . This is about the evisceration of the final vestiges of the social-democratic compromise between capital and labour put into place in the post-war period and the increased turn to neo-liberalism. What's sad is when you get people like yourself hailing it as a good thing because you believe the media propaganda (owned by bug business) that these things cost YOU money. Taxpayers money goes where 1) it is neccesary to maintain social cohesion e.g. NHS, education systems etc and 2) where the political / business masters decide suits their interests e.g. Iraq, NR and so on.

Your comment above reminds me of the image of a turkey praying for xmas as he is sick of sharing a small amount of his collective corn with the others.

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A bit unfair really.The scheme has to be unwound because of privatisation but far more insolvent schemes are left to continue in Local Government and NHS.

You would have thought that if any scheme could remain solvent it would be that one.Mainly men, who die prematurely of heart attacks and so soon extinguish the superannuated liabilities.God knows how LA superann. keeps going,mainly women with life expectantancy into the nineties.Well I do,tripling of council tax.

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Posties are paid pretty badly and to take this away will simply cause more strikes and destroy yet another company final pension scheme.

Badly? They put letters through peoples door. They get well paid for the job they do.

A lot of it gets 'lost'.

A lot gets put through the wrong address.

It's not often I agree with the management, but in this case they don't deserve a payrise, or a final salary scheme.

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got to be up at before light 6 days a week and out in all weathers....no stress but it won't be easy work

Wow. Up before 6.... why should that be a problem?

All weathers... agreed that the weather might not be a nice thing in the winter but they get the time outside in the summer, so all a balance.

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You would have thought that if any scheme could remain solvent it would be that one.Mainly men, who die prematurely of heart attacks and so soon extinguish the superannuated liabilities.God knows how LA superann. keeps going,mainly women with life expectantancy into the nineties.Well I do,tripling of council tax.

Ah, but that mainly happens to stressed unfit men...

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It has to be done unfortunately, low retirement ages and final salary pension schemes aren't sustainable. People are living longer and long term investment returns are lower, so final salary schemes either need to be renegotiated dramatically or abandoned altogether.

And abandoning it altogether is probably better for people right now, because with final salary schemes employers keep all the risk then if they were to renegotiate final salary schemes they'd have to renegotiate at much less favourable rates to give them protection against ever increasing longevity and longer term risk.

I think it'll be interesting to see what happens with a postal strike. The majority of urgent business post can go by courier, other things can be faxed or emailed, and most of the rest of the stuff that's posted is just useless, tree killing spam. I think the only way I'd even notice a postal strike is that I wouldn't get as much stuff through from lovefilm. And most postal workers are easily replaced, it's not a high training job.

Take the pain now, let them strike and establish a much more reasonable deal.

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So during 10 years of unprecedented economic growth, during a miracle economy. The fourth richest nation on planet earth under the labour party has bankrupt the pensions that have been setup and run smoothly for nearly a century?

Gordon Brown and New Labour are not in Government, they are demolition experts!!!!!

The issue is not past growth, but projections of future growth.

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