Is this the end of the final salary pension scheme?
Drinks company Diageo is the latest employer to face staff unrest over the closure of its final salary pension scheme, with thousands of the drinks business’s UK employees voting for strike action. Members of the Unite union at Diageo sites across the UK voted 77 per cent in favour of strikes following an announcement that it planned to move staff from its defined benefit scheme. Sixty-three per cent of GMB Scotland members also backed walkouts; the business has 50 sites across Scotland. According to the GMB, Diageo wants to save £30m a year from pensions costs by closing its final salary scheme, despite ‘significant’ growth in revenues.