GMB Accuse British Gas Of ‘Fleecing’ Consumers And Cutting Staff Pensions As It Announces Record Profits

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Date: 21 February 2008

British Gas to end Final Salary Pension Scheme and replace it with pension scheme paying reduced benefits

British Gas/Centrica is expected to announce record profits tomorrow Thursday 20th February 2008. At the same time the company is consulting on the closure of the Final Salary Pension Scheme for British Gas staff and its replacement with a money purchase scheme which pays much lower benefits. The consultation period on this change ends on Friday 29th February 2008. Gas staff at Leeds, Glasgow, Edinburgh, Cardiff, Manchester, Oldbury Birmingham, Leicester and Southampton will be affected by these proposals which are opposed by GMB.

Commenting on the expected record profits Gary Smith, GMB National Secretary said:

"At the same time that British Gas is fleecing its customers and making record profits it has the temerity to propose to cut the pension benefits of its staff. This is greed gone mad and will be opposed by GMB.

It is about time that a full inquiry was conducted into the operation of the energy market. The average person in the street does not understand how it is that companies like Centrica can announce record profits while they are faced with crippling bills. Neither will they understand why the pension benefits of the workforce have to be cuts.

The Government’s and the regulator’s dogmatic policy of relying on market forces for fuel is in tatters. It has delivered the highest energy prices in Europe. The Government needs to get rid of the regulator and take over the role itself and be accountable to Parliament for how it does the job of regulating the industry."

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Contact: Gary Smith, GMB National Secretary on
07710 618909 or GMB Press Office:

Rose Conroy on 07974 251823 or Steve Pryle on
07921 289880.

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