Power station strike threat

Workers at Rugeley Power Station could go on strike over plans to change the pension scheme at the plant.

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Parent company International Power has set itself on collision course with staff after announcing plans to scrap its final pension salary scheme to new workers.

Their union, Unite, has said it will ballot power plant staff on industrial action in the New Year, which could see workers at Rugeley's plant and at others across the country walk out.

If a strike went ahead it could cripple energy production in the UK with plants at Rugeley, Dinorwig and Ffestiniog in Wales running cold.

Unite has accused bosses at International Power of planning to close its existing pension scheme and replace it with an "inferior" defined contribution pension scheme. A threatened strike could leave thousands of homes without power.

Dougie Rooney, national officer for energy at Unite, said: "We are appalled about International Power's plans which will have a devastating impact on our members' expected pensions and, although consultation with the company has only just begun, we have been given the distinct impression that the company has already made its decision to close the final salary pension scheme.

"International Power is a highly profitable company and these pension changes will alienate its hard-working workforce."

James Flannagan, a spokesman for International Power, said the proposed changes would not affect current workers.

He said: "International Power has proposed a change to its UK pension arrangements, whereby it will close its final salary pension scheme to future employees and replace it with a defined contribution scheme.

"As agreed this will take effect from March 1, 2008, and it does not have any effect on any existing employees."