'Anger' as Nissan plans Washington pension scheme closure

The Qashqai is among models manufactured at the Washington factory

About 1,800 workers at Nissan's car plant in north-east England are set to lose money after the firm announced plans to end its defined benefits pension scheme.

The company said it had grown to "unsustainable levels" but that it still aimed to provide competitive benefits for staff in Washington.

It comes a week after Nissan announced major restructuring plans.

The Unite union called the pension closure plan "opportunistic".

Workers who are members of defined benefits pensions receive annual payments based on their salary and years of service rather than the amount they have paid in.

Unite's Steve Bush said there was "anger" as the scheme's closure would hit workers who were "the bedrock" of the Washington plant's success.

"This is the best, most-efficient car plant in Europe and people with 20 or more years of service have got this extremely disappointing news.

"Unite warned last week that proposed efficiency savings at the plant must not be used as an excuse to attack staff terms and conditions.

"Due to the timing, we see this as an opportunistic attempt to push through long sought-after changes that will have a damaging impact on our members' plans and financial security in retirement."

'Long-term process'

A Nissan spokesman said the firm was consulting with workers.

He added: "We aim to provide competitive benefits to our highly valued staff, but these have to be balanced with the long-term sustainability of our business.

"The level of company investment needed to maintain the defined benefit pension plan has grown to unsustainable levels.

"This planned consultation is not a short-term action. It is based on the formal valuation of the scheme carried out in April 2018, and is the next step in a long-term process."

In all, about 7,000 people are employed at the factory although the majority are currently furloughed as a result of production being halted by the coronavirus outbreak.