UK: GMB organises successful strike in British Gas. Engineers stop work

- See update 19 December

Brian Strutton, GMB National Secretary for British Gas commenting on the strike by gas engineers on Monday 12 December 2005 said "Reports from all around the country are that the strike by GMB gas engineers is very solid - the only people working are those on agreed emergency duties. The industrial action is going to plan on what is a reasonably mild day.

British Gas have now seen the strength of feeling demonstrated by their employees. GMB urges British Gas to stop their unilateral closing of the pension fund to new starters and await the outcome of the next actuarial valuation of the pension fund which is due in little more that 12 months time. This would be in line with their agreement of two years ago when our members agreed to increase their contributions to the fund to keep it open to new starters. This strike demonstrates that employers will not get away with unilaterally reneging on agreements with their employees."

For more background on the strike please go to the GMB website: www.gmb.org.uk

If the employer does not agree, the union has foreseen further strike action on: Monday 19th, Wednesday 21th, January 6th and Janaury 9th. EPSU has sent a message of solidarity.

- Read the press release:











Update 19 December 2005

Statement by British Gas Services and the GMB Union on proposed settlement to pensions dispute for gas engineers

British Gas Services and the GMB Union have reached an agreement under ACAS auspices over pension arrangements for the company's engineers. The GMB has agreed to suspend its industrial action and put the new proposals to its members.

Under the deal:

- All existing trainee and qualified engineers that joined the business after 1 January 2003, and are not already members of CEPS, will be offered the opportunity to join (around 1,700)
- Centrica has agreed to pay an additional lump sum of £35 million into CEPS and has given written assurances on the security of the scheme as part of its commitment to future funding
- Following closure of CEPS, new recruits will be able to join a new career-average salary section of the scheme called CERIS (Centrica Engineers Retirement Income Section) which has been described by independent pensions experts as one of the best available
- Closure of the final salary Centrica Engineers Pension Scheme (CEPS) for new recruits to British Gas Services will be deferred to 31 March 2006

Welcoming the agreement, Chris Weston, Managing Director, British Gas Services said:

“I am pleased that we have managed to reach a sustainable agreement that I believe will help the viability of the final salary scheme for our existing staff, while also offering an excellent pensions package for new engineers.

“I'd like to thank ACAS for the conciliation support they have provided both parties. I'd also like to thank the GMB and our engineers for their professionalism in ensuring no vulnerable customers have been impacted through this dispute. But most of all I'd like to thank our customers for their patience and cooperation during Monday's strike when we prioritised work to the most vulnerable cases.

“We are now back to our full service and once again our engineers will be working on Christmas Eve, Christmas Day and Boxing Day over which period last year they completed 25,000 jobs.”

Brian Strutton, National Secretary, GMB said:

“Following the tremendous show of strength by GMB members taking part in last Monday's strike we have negotiated a deal through ACAS which will be put to the engineers.

“Although I am very disappointed that Centrica has refused to reconsider its decision to close the pension scheme to new starters, I am pleased that we have won the opportunity for another [1,700] current employees to join the scheme. In addition, we have secured £35 million extra funding and written guarantees on the future security of pensions in British Gas Services. We are suspending industrial action while we consult.”

ENDS

For more information contact:

British Gas Services

Mish Tullar on 01753 494104 or 07789 570808

Claire Monaghan on 01753 494107 or 07979 566249

GMB
Steve Pryle 07921 289 880

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