British Gas owner Centrica is facing anger from its 11,000 engineers over cost-cutting plans for their pensions which have prompted claims that executives are out of touch.
Leaked comments from internal message boards show workers are furious over proposals branded a “disgrace” and “tosh”, with anger at pensions being targeted for savings while leaders continue to receive multimillion-pound pay packages.
Matthew Bateman, head of residential services at British Gas, told staff on one thread he understood concerns but said he would “be impacted by the changes in the same way as everyone else if they are accepted”.
In another comment, he said that “without fundamental change to our cost base we will not grow” and warned the pension scheme may be closed if engineers reject the changes in a ballot, expected in January.
Insiders said the executive’s responses suggested leaders were out of touch with the rank and file staff at the UK’s biggest energy firm.
“What they’re displaying is a lack of empathy. They’ll be alright. We’re being taken for complete mugs,” one long-standing engineer told The Guardian.
“It’s harder to take when the people who are taking these changes forward will be financially rewarded if these changes go through,” they said, explaining they expected the share price would rise if the changes go ahead, benefiting share-holding executives.
Centrica said last week it was on track to achieve £200m of cost-savings this year, as the company adapts to tough competition and the government’s price cap.
But the fight to secure savings from the pensions scheme for engineers will not be an easy battle.
“What we are being offered to sell our retirement is a disgrace. Have the senior leadership team looked into reducing their own salaries and bonuses?” said one staffer on a message board.
Another echoed the anger at company bosses, citing chief executive Iain Conn, who earned £1.69m in 2017.
“There’s all this talk about how it’s going to affect us yet there is no clarity on how Iain Conn and the senior leaders are going to be impacted. People should stop taking million-pound bonuses and shares out of the company,” they wrote.
Others said while they understood the company needed to make savings, there must be alternatives to “slashing” pensions.
“We get that the world is changing. What we can’t deal with is the extent of the changes to pay for the government price cap,” one wrote. Some said they would leave if the proposals were voted through.
One engineer, who has been with the company for many years, told The Guardian that if the changes go through then staff would have to live out their retirement on £190,000 less over a 15-year period.
A leaflet sent to engineering staff on the proposals outlined how their contributions would need to increase by 3% of their salary and the “build-up”, or accrual, rate for their pension pot would reduce from 1/80th to 1/107th, meaning a smaller pension upon retirement.
Engineers have been offered a one-off “transition payment” – dismissed as a bribe by one worker – of £8,750 into their pension if they accept the changes, which would take effect next April.
Office staff at Centrica are also facing cuts to their pensions, which the Unison union have called an “unacceptable deal” that would make them work longer, pay more and get less.
Centrica said it was consulting with unions and colleagues about the proposals, which were key to keeping the company price competitive with rivals.
“We want a long-term attractive pensions deal that is good for our customers and colleagues. The energy market is increasingly competitive and we are taking action across our whole business to respond to this,” they said.
