From a Prospect Branch Briefing dated July 2006. (It helps to have a tidy up once in a while!)..,,
The spectre of a potential sell off only brings into sharper focus the issue of pensions and the need for strong and effective trade union representation within NATS. I am aware that many of you will have been along to management briefings on this issue and it is important that you understand and support the position being taken
by the unions. Prospect held a pensions seminar on the 23 June led by
our pensions expert at Head Office, Fiona Draper, to ensure that key Prospect and PCS representatives were aware of the facts and understood our position.
The reality is that NATS pays a relatively low level of employers' contributions to the pension scheme, (12.2%), in contrast to organisations in other areas of the economy which have defined benefits pension schemes (including the civil service). The fact that the contribution rates by the employer have remained at relatively modest and affordable levels is a tribute to the careful stewardship of the pension scheme by the Trustees on your behalf.
The arguments put forward by the Unions are simple but not simplistic.
We believe that the pension scheme is:
♦viewed by members as a key term and condition of employment which assists NATS in the recruitment and retention of highly skilled and motivated
should not be seen by the employer as simply a burden.
♦the interests of existing and future beneficiaries of the scheme are best served and protected by the scheme remaining open to all.
♦some of the comparisons made to the position of pension schemes
elsewhere are not valid due to the careful and effective stewardship of the NATS scheme.
♦any discussions with regard to pensions should be evidence led and based on empirical fact.
♦pensions are a long-term investment and should be viewed as such.
It is important that members are aware of the fact that the unions are not 'burying our heads in the sand' with regard to this issue and that we are seeking to effectively promote what we believe is in the best long term interests of members in NATS. Pensions are a long term investment and viewed by members as effectively 'deferred wages'. The unions have not been seeking to avoid a dialogue with management on the issue of pensions, but our starting point is that we wish to ensure that the current scheme remains open to all and has a long-term sustainable future.
On the most recent professional advice we have had we believe that the current scheme is well funded and sustainable for the future.
The pension scheme is due for its triennial review at the end of this year. Given that the scheme was in surplus almost two and a half years ago and given improvements in terms of equities we would expect that the outcome will show the scheme to be in surplus again. Against that backdrop we believe it is precipitate and premature for the employer to seek to take forward any work with regard to the future of the scheme until the triennial valuation has taken place and the Trustees allowed to consider the outcome.
Pensions are a key issue which affect all Trade Union scheme members across NATS. We have made robust representations to the employer and have also raised the issue with the Secretary of State for Transport. We will also be raising the issue with the Regulator and Airline Stakeholders to ensure that they understand how seriously the unions consider this issue and the potential impact if a dispute arose.
Conclusion
Given the challenges we face on issues such as pensions and ownership - there never has been a more important time to be a union member. The more members we have and the more we work together, the more effective we can be on your behalf. I hope to be doing a tour of airports and centres over the coming months and look forward to the opportunity to meeting with you. If in the interim you should have any issues of concern - please raise them with your local representative.
Garry Graham National Secretary
..A lot of bones to pick out of that, 2 years on, my, how things have changed. Just makes me deeply suspicious.