Morrisons has been accused of “fleecing” its workers by union leaders after it revealed plans to slash its employer pension contributions for thousands of its store staff.
The supermarket said it would lower its contributions from 5% to 3% and would increase the amount that its workers pay from 3% to 5% by 2025. The change will be phased with both parties contributing 4% in March next year.
This will affect 60,000 hourly paid employees. Those not hourly paid such as senior managers and directors will not be affected by the change.
Morrisons’ reasoning is that its contributions will increase under the proposed new legislation, where the automatic enrolment will no longer include a lower earnings limit of £6,240.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Morrisons told Grocery Gazette: “There will be a formal consultation process lasting until early January 2024 but it’s important to note that the amount of money Morrisons is putting into colleague pensions will actually be going up when the auto enrolment changes come in.”
However, Unite union general secretary Sharon Graham said the supermarket was “planning to fleece workers by hiking their pension contributions while slashing its own”.
“This is blatant profiteering and a disgraceful new low for this well-known supermarket.
“The pension schemes are in surplus and the company is in profit. There is no justification for this attack. Unite will support its members in whatever action they choose to take and strike action is a distinct possibility.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
So Morrisons appoint a new CEO who is Mr Wonderful Baitieh who has made billions for Carrefour and a couple of months later, Morrisons slash their pensions contributions. No wonder Private Equity firms love him. More fleecing reasons NOT to shop at Morrisons. The service andthe produce is abysmal over the last couple of months. Ive moved to Waitrose.