Scotland's pensioners back Grangemouth workers

26 April 2008

In a show of support for the workers at Grangemouth, who are striking tomorrow to defend their pension scheme, the National Pensioners Convention Scotland has condemned Ineos' action as the latest in a long line of corporate attacks on retirement benefits.

"Fair-minded citizens will understand absolutely why the Grangemouth workers are striking. This is just the latest in a long-line of corporate swipes at workers' pensions and it must be resisted," said George Henderson, chairman of the National Pensioners Convention Scotland and vice president of the T&G Retired Members Association.

"Companies close their final salary schemes to protect themselves from stock market volatility, but it is a callous and cynical move particularly when set against the rewards the private sector chief execs give themselves.

"So we salute the Grangemouth workers as they resist this attack on their occupational pension. They are the latest in a long line of workers, stretching back to the pension pioneers of the 1890s, who are prepared to stand up and fight for dignity and financial security in retirement."

The Grangemouth workers, members of Unite the union, are striking to protect their final salary scheme and ensure it is kept open to new entrants.  The workers argue that the scheme is part of their wages, is well-funded and easily afforded.

According to the NPC, Ineos' moves to shut the pension scheme at Grangemouth is the latest demonstration of the many ways corporates raid workers' pensions, and has echoes of developments in the US.  A Wall Street Journal analysis of corporate filings reveals that executive benefits are playing a large and hidden role in the declining health of America's pensions. While companies are reducing, freezing or eliminating workers' pensions they are allowing executives to build up ever-bigger pensions for themselves, causing the companies' financial obligations to balloon. Benefits for executives now account for a significant share of pension obligations in the US with, in some cases, a company's obligation for a single executive's pension approaching $100 million.