Royal Mail in fresh bid to head off pensions row

Royal Mail on Friday offered up new proposals for its pension scheme following fresh talks with unions, in its latest bid to avoid strikes.

The postal giant had initially said in April that it would close its £7.4 billion defined benefit pension scheme at the end of March 2018 after a review concluded it had become unaffordable.

But the company — headed by Moya Greene — said it would now offer employees a choice between a defined benefit and a contribution pension scheme as part of a new section of the pension plan.

The cost of the new pension scheme proposal is expected to be funded within the firm’s current £400 million annual pension contribution.

Unite will hold a ballot to seek members’ views on the proposals.

The union’s Brian Scott said: “The latest position is an improvement from the original proposal, and through our discussions we have achieved these improvements.”

But the Communication Workers’ Union, which has been threatening strike action, said it rejects the latest proposal.

Shares fell 6.5p to 404.5p.