My Ref: MRP 6/4
19th May 2015
Circular Num: NP/090 /15
To: The Secretary All Branches & Regional Councils
Dispute with Caledonian Macbrayne
Defend Jobs, Pay and Conditions and Pensions
Further to the Circular NP/081/15 1st May 2015, as I report previously the Scottish Government and CalMac management have indicated that they intend to review the benefits provided by the CalMac Pension Fund due to affordability and sustainability of the scheme.
The RMT has been informed by management that they propose to make the following changes to the fund:
• Increase member contributions from 6% to 9.5% - this will result in members take home pay being drastically reduced
• Align the Normal Pension Age of the fund with the increases to the State Pension Age – this will result in members potentially having to work an extra one, two and eventually three years
• Change the fund from a Final Salary scheme to Career Average Revalued Earnings (CARE) scheme – this will result in members’ pensions being considerably reduced at retirement
• Pensions in payment to be increased in line with CPI to a maximum of 2.5%, not RPI - this will result in members’ pensions not keeping up with inflation and being worth less
These proposals are nothing more than an attack on our members deferred wages. Not only do management want to reduce members’ potential retirement benefits, make them work longer, reduce the value of their pension at retirement, they also want them to pay more for the pleasure.
The RMT have made it quite clear to management that we want a guarantee that no changes to pensions will be made to the scheme without an agreement being reached with our members’ union.
In light of this attack and also our concern that employees job security and Terms and Conditions are under threat, we are now balloting our members for industrial action.
I will keep you advised of all further developments.
My Ref: MRP 6/4