Co-op is to replace the existing scheme, based on final salary, to one that will work on the basis of an employee's average career wage.
A T&G spokesman said the plan will effectively diminish the final sum that can be potentially accrued, making it a lesser pension scheme, and that industrial action has not been ruled out.
'The T&G has about a thousand members in the transport and distribution operations who will be directly affected by today's news,' said T&G national secretary for transport Ron Webb. 'This is not a good way to start 2006. The Co-op can be assured that we do not accept the closure of the final salary scheme as a foregone conclusion.'
Commenting on the pension proposals, which are yet to be formally agreed, Co-operative Group secretary Nick Eyre said: 'The scheme is fair and equitable for all employees and is more suited to flexible working and lifestyle patterns than was the case previously.
'Within a climate of increasing pressure and uncertainty in terms of future pension provision, this scheme will allow our employees to plan ahead knowing that their pensions will be protected against future investment returns and increasing lifespans. It is a scheme that will continue to attract, motivate and retain a large number of co-operative employees throughout the UK and form an important part of their overall benefit package,' he said.
The news coincides with the revelation that Philip Green's retail group Arcadia plans to tighten its pension terms. Arcadia staff are to work an extra five years in order to get a full pension. Green was unavailable for comment.
An Usdaw spokesman said of Arcadia: 'We believe there needs to be a dialogue on this. We expect pensions to be reviewed but to say the employees need to work longer and pay more when the fund isn't even in crisis is bemusing.'
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