BMW workers have accepted a revised offer over the closure of their final salary pension scheme.

According to Unite workers union, it was announced 10 July 2017, that a total of 81.5 per cent of union members working for BMW’s car plants in Cowley, Goodwood, Hams Hall and Swindon, agreed to a revised offer, ending the long-running pensions dispute.

Workers have agreed upon an offer whereby the final salary pension scheme will be closed and members moved into a high-ranking defined contribution pension scheme in the auto industry.
Unite noted that members did not make a recommendation on the deal, which also provides greater flexibility on the timings of transitional payments totalling £22,000 over three years.

Instead, members will be able to opt for a transitional payment of £25,000 over three years to be paid into their DC scheme.

BMW originally offered its employees transitional payments worth £7,000 in an attempt to solve the dispute that has been running since 2016. Last month, BMW workers warned that a further wave of strikes was “almost certain” if talks with the company were not successful. BMW workers across the country staged four walkouts and protests earlier this year, while three 24-hour strikes were suspended in May as workers deliberated on the company’s proposal of closing the final salary scheme and moving workers into a DC pension plan.

Unite national officer Fred Hanna said: “Unite members have overwhelmingly backed the revised pension offer bringing this long running dispute to an end.

“BMW initially thought it could railroad its pension changes through with transitional payments of just £7,000. It’s testament to the resolve of Unite members and their solidarity that the carmaker was forced to more than triple these payments and give additional guarantees.

“BMW’s UK workforce is among the most efficient and skilled in the auto industry. We look forward to working with BMW to ensure the world beating Mini and Rolls-Royce motor cars go from strength to strength.”

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