Asda has come under fire from trade unions after 2000 workers signed a petition against proposed changes to its defined benefits (DB) pension scheme.
The petition was submitted after Asda began a 60-day consultation period on proposals to its DB scheme which would result in the reduction of death in service payouts to a quarter of their current value, the cessation of matching staff pension contributions, and staff having less choice over how their pensions are handled.
Trade union Usdaw, which met with the retailer to discuss changes earlier this week, has branded the proposed changes “unfair, unreasonable and unnecessary”.
“Staff are still signing up to voice their opposition to the plans to worsen their pension and life assurance employee benefit package and call on the company to withdraw the proposals,” Usdaw area organiser Michala Lafferty said.
“Pensions are not a bonus or gift – they are based on earnings and are effectively deferred wages. Usdaw believes it is an entitlement and we view this proposal as nothing more than a wage cut.”
A spokesperson at Asda said: “We are currently consulting with our colleagues on proposals to amend our pensions scheme.
“We are taking all comments and feedback on these proposals seriously before any final decisions are made.”