No Progress In Talks To Avert British Gas Engineers Strike Over
Pensions

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Date: 05 December 2005

No progress was made at today's talks between GMB and British Gas in Windsor aimed at averting the first day on strike action over the future of the Centrica pension scheme for new starters from January 1st 2006.
Brian Strutton, GMB National Secretary said, "I was not hopeful that the talks would bring any progress and I was not wrong. As of now, the five days of strike action go ahead starting on Monday next."

End

Contact:Rose Conroy, GMB Press Office on 07974 251823 or Steve Pryle Press Office on 07921 289880.

Notes to Editors:
1 6,000 GMB members working as British Gas Engineers will take part in five 24 hour stoppages in their dispute with the company over their pension rights on Monday 12th December 2005, Monday 19th December, Wednesday 21st December, Friday 6th January and Monday 9th January 2006. These twenty-four hour stoppages will take place from 7 a.m. to 7 am. In addition GMB announced that members will be suspending out of hour cover from the 12th to the 23rd December 2005 and from the 4th to 10th January 2006 inclusive. This covers the period from 8 p.m.to 8 a.m..

2 2 years ago British Gas/Centrica gave employees the right to choose to close their schemes or to pay an increased contribution rate to keep them open. This was done in a formal vote and British Gas/Centrica promised to abide by the result. The engineers voted overwhelmingly to keep their scheme open and have paid an extra 1% contribution. British Gas/Centrica is now reneging on that agreement after only 2 years. This has infuriated the engineers.

3 British Gas/Centrica claims that the pension scheme has a deficit problem. In fact, this is one of the healthiest pension schemes around and is fully funded. There is no financial reason for this change.

4 British Gas/Centrica closed its white-collar staffs pension scheme with promises that this would not affect benefits. Now they are trying to cut the benefits they promised to protect. The engineers believe the same would happen to them if they allowed their scheme to be closed and it demonstrates why they do not trust their company on pensions.

5 The engineers pension scheme is due to have a full valuation in 2007. The Trade Unions proposal to British Gas/Centrica is to review the funding and cost of the scheme in light of that valuation.

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