Pensions deal for H&V

23-09-2010

Phase two of the current two-year H&V Operative Wage Agreement – which was negotiated by HVCA and Unite – includes what the parties describe as a pioneering and forward-thinking provision in relation to occupational pensions.

With effect from October 4 this year, all operatives employed under the agreement will have the right to participate in an employers’ contributory pension scheme.

This will involve an initial employers’ contribution of 1 per cent of basic earnings above the Primary Earnings Threshold, currently set by Government at £110.00 per week.

The introduction of the pension provision – some two years ahead of such arrangements becoming a legal requirement on employers – follows an independent survey carried out among operatives covered by the agreement.

HVCA head of employment affairs Peter Rimmer summarised the principles behind the introduction of the scheme. “Pensions legislation is forcing the pace, with many experts in the field advising employers to incorporate appropriate provisions into their employees’ terms and conditions now, rather than wait for this to become compulsory,” he explained.

“The introduction of a contributory employers’ pension scheme into the Operative National Agreement will help to ensure that employers in the H&V sector are in the vanguard in this respect,” he added.