Union Unite will start balloting 1,500 members on TfL and London Underground on strike action over what it says are plans to replace the final salary pension scheme. An independent review of the TfL Pension Fund proposed four options for reform, including three that would modify the scheme. TfL has not said what it plans to do with the scheme. 

 

Ballot papers will be sent out from Thursday and the ballot will close on 26 May. Unite members will also be balloted on pay and jobs.  

 

If members vote in favour of industrial action, strikes could begin by mid-June according to Unite, but it added that any action is likely to be co-ordinated with sister unions who also have members in TfL. The largest union in TfL, TSSA, has not held a ballot to date, but its general secretary Manuel Cortes warned earlier this year that any attempt to lower the value of the pension provision was “a red line and we will ballot for strike action”. 

 

mallowstreet understands that drivers’ union ASLEF has not balloted its members either, but it equally threatened with strike should the pension scheme be changed. The National Union of Rail, Maritime and Transport Workers received a mandate for strike action from members in January over jobs, pensions and working conditions. 

   

    

Unite, whose TfL members include revenue collectors, engineers, dial-a-ride staff and others, claimed that members will be poorer in old age. “This is an appalling way to treat a loyal and committed workforce. Workers are balloting for industrial action as a last resort. Despite repeated calls to management there have been no guarantees on pensions or job cuts.” 

 

McCartney said a strike would cause severe disruption to public transport throughout London “but this dispute is entirely of TfL and ultimately the government’s own making”. 

 

 

A review of TfL’s £13bn open final salary scheme was made a condition for receiving funding from central government as the transport operator struggled with low passenger numbers due to pandemic lockdowns. Unions said the government's demands were politically motivated.  

 

In late March the reviewers, Sir Brendan Barber and Joanne Segars concluded that four defined benefit options should be on the table for running the scheme, including keeping the status quo and two career average options, though they refrained from making any recommendations. Defined contribution was not among the suggestions. 

 

TfL is still to discuss the report findings with the government. A Transport for London spokesperson said a review of TfL pensions was a condition placed on TfL by government as required as a result of its Funding Agreement.  

  

“The report rightly highlights the complexity of the issues related to pension reform and TfL will now take time to consider next steps. There are currently no proposals for changes to TfL’s pension arrangements. Any reform proposed in the future would be subject to consultation with all stakeholders, including staff and trade unions,” the spokesperson added. 

 

Charts in the call for evidence issued as part of the independent review indicated that the scheme was about 100% funded, according to TSSA. 

A February letter by transport minister Grant Shapps sent to London’s mayor Sadiq Khan required that TfL “will continue to carry out a review of its pension scheme and reform options with the explicit aim of moving TfL’s Pension Fund into a financially sustainable position”.