Royal Bank of Scotland is to cap future increases in pensionable pay to 2% a year or the rate of inflation, which ever is lower.
Union Unite described the plans as a "body blow" to its 60,000 staff. The bank's defined benefit scheme was close to new members in 2006. The company is also proposing to reduce the severance terms for those workers over 50 who choose to take an immediate pension. The union's senior representatives at the bank will meet this today to decide the most appropriate course of action to take in response. National officer Rob MacGregor said: "This is a body blow to tens of thousands of staff working at RBS. The company intends to cap pensionable future pay rises and promotions at 2% which...
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