Morrisons has defended plans to shake up its pension contributions next year as the Unite union blasted the proposal.
The supermarket recently communicated to colleagues a proposal to change its employer pension contributions over the next few years, while increasing the pensions contributions of its hourly paid employees.
Morrisons staff currently contribute 3% of their salary above £6,240 to their pension, and the company contributes 5%.
The supermarket has proposed changing this to a 4% contribution from both parties in March next year before moving to 5% from colleagues and 3% from the retailer in March 2025.
A spokesman for the supermarket told Grocery Gazette: “There will be a formal consultation process lasting until early January 2024 but it’s important to note that the amount of money Morrisons is putting into colleague pensions will actually be going up when the auto enrolment changes come in.”
The government legislation, which is expected to be brought in next year, will no longer include a lower earnings limit of £6,240.
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However, the Unite – , which represents 1,000 of its warehouse workers in Cheshire and Wakefield – is preparing a challenge as it has said the grocer is “attacking the pensions of tens of thousands of hourly paid workers”.
The union’s general secretary Sharon Graham said: “Morrisons is planning to fleece workers by hiking their pension contributions while slashing its own contributions to the scheme.”
Unite estimates the supermarket will save up to £10m a year as a result of the changes.
It is organising briefings with members in the coming weeks to seek a mandate for action and is demanding that Morrisons withdraws the proposals.
Graham added: “The pension schemes are in surplus and the company is in profit, there is no justification for this attack. Unite will support its members in whatever action they choose to take and strike action is a distinct possibility.”
