Yet another company has announced plans to close its final salary pension scheme, causing a threat of industrial action from steel union Community.

Metal product manufacturer, processor and distributer Corus is to rule out new entrants to the British Steel Pension Scheme from 21 September 2009. Community represents the majority of workers at the group, and fears that this is just the first step towards the complete closure of the scheme.

The union has opposed the suggestion since January 2009, when Corus first raised it.
"We are appalled at this decision," said Michael J Leahy, general secretary of Community.

"The British Steel Pension Scheme is one of the best run pensions in the UK and it has provided security in retirement for generations of steelworkers. We're concerned that this will be the thin end of the wedge leading to total closure of the scheme and all unions are united in their opposition to this move by Corus."

Leahy added that the move is a "slap in the face" for workers following an already difficult year, when thousands of workers lose their jobs. "This follows what now appears to have been a sham consultation by the company where more than 99 per cent of respondents opposed the proposal to close the scheme to new entrants."

He said the union would be bringing together representatives in the coming days to "consider what action to take and at this stage we cannot rule out balloting our members for industrial action."

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