(qlmbusinessnews.com Fri. 24th May, 2024) London, UK —
Nearly 1,000 Morrisons Staff Begin Strike Over Pension Contribution Changes
Nearly 1,000 workers at two Morrisons warehouses have commenced a three-day strike in response to cuts in the supermarket’s pension contributions, a move they argue equates to a loss of up to £10 million annually.
Employees at the Gadbrook, Cheshire, and Wakefield, West Yorkshire sites—including stock controllers, cooks, canteen staff, and administrators earning between £12 and £13 per hour—are protesting against changes that will see them lose an average of £500 each year. The company plans to reduce its pension contributions while increasing the amount workers must contribute.
The Unite union, representing the workers, claims that Morrisons is also abolishing long service pay awards and accelerating the pace at which warehouse goods must be processed. Sharon Graham, Unite’s general secretary, has accused Morrisons, which is grappling with significant debt following a £7 billion takeover by US private equity firm Clayton Dubilier & Rice in 2021, of “fleecing workers.”
“These unjust changes to our members’ pensions will leave them financially worse off every month. Unite will not tolerate such actions from any employer, especially Morrisons, which is making substantial profits during a cost of living crisis,” said Graham.
Until March, workers contributed 3% of their pay to pensions while Morrisons contributed 5%. The company has now shifted to a policy where both sides contribute 4%. Morrisons argues that due to upcoming government changes to pension auto-enrolment rules, it will eventually contribute more to workers' pensions. They assert that the reduction in pension contributions will be offset by a proposed pay rise.
Currently, workers earning less than £10,000 annually are not automatically enrolled in a pension scheme, and companies are not required to make contributions on earnings below £6,240. The government plans to abolish these limits, potentially requiring all workers to be enrolled. However, the implementation of these changes remains uncertain, pending a consultation report due in the autumn, which will be reviewed after the general election on 4 July.
Morrisons reported that the two warehouses affected by the strike are operating at “reduced capacity.” A spokesperson stated, “We have detailed contingency plans in place across the business and are confident that our customers, stores, suppliers, and partners will not be significantly affected. We remain open to further dialogue with the union.”
The spokesperson added, “We have proposed several new measures to Unite, including a 9% pay increase, a new service award scheme, and improvements to future pension scheme changes. Unfortunately, Unite has rejected these proposals without presenting them to its members and is continuing with strike action at two of our seven logistics sites, initially over three days.”
This industrial action at Morrisons’ warehouses follows similar strikes at Amazon and Asda hubs in recent months, driven by disputes over pay and conditions amidst rising living costs and a shortage of warehouse workers post-Brexit and pandemic.
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