By Caroline Fraser
The Trinity Mirror Group who publishes national titles such as the Sunday Mirror has had to stop pensions schemes to its existing staff members due to increasing costs of running the publishing service.
The Group recently announced that a two month consultation will take place as the group put forward their reasons for the drawback being necessary. Pension fund losses have increased from £37 million in 2001 to £275 million by the end of June this year. Such dramatic deficits have resulted in the group’s 3000 members changing to a ‘defined contributions scheme’ in which the active members will have a pension based on the amount payed in, rather than a fixed amount of money which relates to each individual employee’s earnings.
This news has left many employees ‘shell-shocked’ as the National Union of Journalists, (NUJ), have criticized the Trinity Mirror Group regarding news of the current pension scheme stopping. Paul Holleran, NUJ Scottish Secretary, said: “This announcement on a Friday afternoon has left many of our members shell-shocked… the scrapping of the final salary scheme is the latest in along line of attacks on staff at Trinity Mirror and serious questions need to be asked and answered about the capability of the senior Trinity directors.’
The Trinity Mirror issued a statement which read: ‘Closing these schemes to future accrual would help limit the increase in liabilities…’ The Trinity Mirror Group seem confident with their pension scheme alterations and by offering staff another pension plan. Meanwhile, discussions regarding the final pension payout stopping are continuing.