Usdaw says no to proposals that retail staff wait a year to sign up for a Government pension
Usdaw will fight any proposal to force retail workers to wait a year before they can sign up to the proposed National Pensions Savings Scheme.
Britain’s biggest retail union believes a one year waiting period before employers automatically pay three percent of their employees’ salary into the scheme is far too long.
Usdaw believes introducing a one year waiting period will deprive shop staff of a year’s contributions to their pension without any significant inconvenience to their employer.
“The TUC report some retailers are lobbying for this one year waiting period but we will fight this idea because it will discourage many of our members from beginning to make proper provision for their old age,” says Usdaw general secretary John Hannett. “We would prefer for our members to be able to pay into the National Pensions Savings Scheme from day one.
“Retail is an industry with a high turnover with many companies reporting over half their staff leaving within the first year so it is vital they have the chance to join this scheme as early as possible to start building up a fund that will sustain them in their old age.
“Although retail staff do move around more than many industries they still have to pay national insurance from day one so it wouldn’t be difficult for their employer to take their pension contributions at the same time.
“Pensions are the number one worry for our members and waiting a year will only discourage staff from signing up for a pension as well as reducing their contributions by a year which will hit them in the pocket.
“In the modern world of work people move around far more, particularly in retail, and waiting for a year to join the National Pensions Savings Scheme will only discriminate against those workers it is meant to protect.”
