Rail Union RMT has today announced that it is to launch a fight against Balfour Beatty, after the construction company stated that it is proposing to cease future accrual in its defined benefit pension fund in a move that will affect 2,683 workers.

As part of the proposals, workers will not be able to build up any future benefits in the Balfour Beatty Defined Benefit Pension Fund (BBPF) and instead would be offered to build up a pension in the company’s defined contribution scheme. Increasing deficits and the negative impact of deficit recovery payments on the company’s balance sheet have been cited as the main reason for the BBPF closure.

However, RMT argued that Balfour Beatty has paid wages, benefits, bonuses and pension top ups of over £4.3m to its top directors.

RMT general secretary Bob Crow said: “This cash-led attack on pension rights at Balfour Beatty is yet another example of companies pulling the rug from under decent pensions in favour of inferior schemes that cost the company less and off no guarantees on future rights.

“Balfour Beatty is attempting to bulldoze these proposals through, with a gun at our members heads, with the minimum of notice and RMT will be looking to build a joint campaign with other unions to defend decent pension rights.”

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