TSSA cites impact on pensions as it rejects pay offer
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Trade union TSSA has said its members have 20-30% less pension than in 2015 because of below inflation pay rises. The union recently rejected a pay offer of 3%, demanding a rise at least in line with the retail price index.
Members of the largest union in Transport for London voted to reject TfL’s initial pay offer last week. They indicated support for strike action without “a significantly improved offer that is paid in full as a consolidated increase to all staff”, TSSA said.
Low wage growth, lower pension?
The union, which represents workers in the transport and travel industries, said that since 2015, the value of members’ salaries has fallen by 20-30% compared with employees in London Underground and against the rate of inflation, for which it refers to RPI.
It added: “This pay suppression has also devalued our members’ pensions, which are based upon final salary - bonuses are not taken into account.” The real terms value of members’ pensions is currently 20-30% less than it was in 2015, according to TSSA, even without any further changes that may follow from the independent pension review, published in March.
TfL will 'take time’ to consider pension fund options
The review, which was imposed by central government in exchange for a funding deal, proposed four defined benefit options including the status quo.
A TfL spokesperson said the report about TfL pensions “rightly highlights the complexity of the issues related to pension reform, and TfL will now take time to consider next steps”.
The spokesperson added that there are currently no proposals for changes to TfL’s pension arrangements and that any reform proposed in the future would be subject to consultation with all stakeholders.
TfL remains committed to reaching an agreement “as quickly as possible” with trade unions, the spokesperson said, adding TfL is “keen to ensure there is minimal delay in putting in place a pay increase for our staff”.
Are workers losing out twice from low wage growth?
