Pension proposals defended by Potash
CLEVELAND Potash has hit back at “misleading” claims over proposed changes to its pensions scheme.
The Loftus mining firm said the changes - condemned as “unfavourable” by union representatives - are “the best possible arrangement” to secure the long-term future of the scheme.
A spokesperson said: “It is regrettable that a number of misleading claims have been made in an attempt to cloud this issue - especially the suggestion that this is the ‘thin end of the wedge’ in changing entitlements across a range of areas.
“Under the proposals being put forward, employees will have a choice of a range of pension provision arrangements.”
Unions have agreed to hold a ballot on the proposals after initially rejecting previous amendments tabled by the company.
It is thought the most recent offer will allow employees to receive full pension benefits upon retiring at 60 - but only subject to the company’s approval - while employee contributions would rise from 5% to 7.5%.
The company said its pension scheme had been affected “by exactly the same financial pressures” that had led to other firms revising their arrangements in recent years.
“Pension arrangements must be sustainable in the long-term, especially given the uncertainties of commercial and financial markets,” it said.
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