Barclays bracing itself for protests
BARCLAYS’ staff are set to stage a protest over pensions outside the bank’s annual meeting today.
Barclays chief executive John Varley has argued that the bank’s pension fund deficit is worsening and curtailing its final salary pension scheme is best for present and future staff, and its pensioners.
But the Unite union, which represents more than 25,000 workers at the bank, said its British members were “incensed” by the decision to close the final salary scheme.
“Our members will not accept this decision by the bank to erode their pension arrangements,” he said.
Barclays’ UK retirement fund, which includes its final salary and hybrid funds, had a deficit of £2.2bn at the end of September, compared with a £200m surplus just a year earlier, it said.
Barclays is proposing that no future benefits can be built up in the final salary scheme, with staff instead joining a hybrid cash balance plan.
Unite said it welcomed the bank’s £3bn profit unveiled on Monday but that it was “appalled” by the bank’s attitude to long-serving workers.
The union said the decision to close the scheme came despite the retention of “fat cat bonuses for senior executives at Barclays”.
Unite members are planning to wave placards bearing the words “Hands off our pensions” to highlight their anger at the proposals.
Unite said a strike ballot would be held later this month and a consultative poll had indicated that 92 per cent of staff would back the action.