In an effort to increase its capacity to cut prices, Morrisons has proposed ending two of its pension programmes.
The director of human resources for the trouble-ridden retailer, Emily Lawson, was quoted as saying in the Guardian, "This proposal is intended to provide fairer pensions benefits to all colleagues, ensuring that those doing the same role primarily have access to the same benefits.
"These are only proposals at this stage. Before any final decisions are made we will be entering into a consultation process with affected colleagues and their representatives."
In both cases, the central objective is to free up capital in order to slash prices, and thus be able to compete with the UK FMCG market rulers – Lidl and Aldi.
Morrisons will save somewhere in between £5 million and £10 milion per year as a consequence of the pension closures, which will affect about 8,000 employees if they come into effect.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article written by Peter Donnelly.
