Union leaders have accused Morrisons of ‘fleecing’ staff after it revealed plans to reduce employer pension contributions for thousands of store staff.
The proposed changes involve lowering contributions from five to three percent and raising the employee’s share from three to five percent by 2025.
The transition will be gradual, with both parties contributing four percent in March of the coming year.
The changes would impact around 60,000 hourly paid workers.
Senior managers and directors, who are not hourly paid, are unaffected by the changes.
Morrisons justifies the changes by pointing to upcoming legislation, where automatic enrollment no longer features a lower earnings limit of £6,240.
The supermarket chain said the total amount dedicated to colleague pensions will rise due to the proposed alterations.
Morrisons said: “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’s general secretary, Sharon Graham, said Morrisons was “planning to fleece workers by hiking their pension contributions while slashing its own”.
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“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.”