Unilever pension dispute breakthrough

The dispute over pensions at Unilever has lasted for many months

Two unions have broken a deadlock in a long-running pensions dispute at Unilever by accepting a "significantly improved" offer.

Members of Unite and Usdaw have accepted a revised scheme, with GMB balloting its members on the offer.

The dispute, which has involved strike action, surrounded the closure of workers' final-salary pension scheme.

The company, which produces brands such Marmite and PG Tips, improved the details of an alternative scheme.

'Bitterly disappointed'

The proposed closure of the final-salary scheme - which has about 5,000 active members - to existing staff prompted walkouts by Unilever employees, the first national strikes in its history.

Unions said production of household brands including Dove soap, Pot Noodle, Persil, Lynx, Wall's ice cream and Hellmann's Mayonnaise was affected at 12 sites across the country.

The company said that the scheme's costs have been rising because people were living longer and investment returns had proved volatile.

Unions said that a new deal was accepted after improvements were made to the career-average pension scheme proposed to replace the final-salary scheme.

"In addition, we got a guarantee that there would be no further change before 2018 and agreement that after that date, no further announcements of change would be made before there is full consultation with the trade unions," said Unite's national officer Jennie Formby.

David Johnson, national officer of Usdaw, said: "While we have achieved some important improvements to the replacement scheme, our members remain angry and bitterly disappointed by Unilever's decision to close the final-salary pension scheme."