Digging deeper

Jun 23 2009 by Sue Scott, Evening Gazette

A WORSENING economy has forced several firms to alter the terms of their occupational pensions.

In Tees Valley, Loftus mining firm Cleveland Potash has increased employee contributions from 5% to 7.5% following a furious row with unions.

Under the revised terms employees can receive full pension benefits upon retiring at 60 but only subject to the company’s approval.

The Loftus mining firm said the changes - condemned as “unfavourable” by union representatives - were “the best possible arrangement” to secure the long-term future of the scheme.

Other local firms have preferred to shun staff pensions in favour of other incentives.

Chey Garland, who runs Hartlepool-based Garlands Call Centres, prefers to offer cash incentives and free weekend breaks for staff.