UK - Trade union officials are threatening legal action if the Hilton group does not increase contributions to its UK final salary scheme.
Community, formerly the ISTC union, says it will consider attaining legal bargaining rights that will force the company to the negotiating table unless contributions are raised from 8-9pc to at least 10% of pay.
The call, which comes after the leisure and hotels giant has announced first-half profits of £189.7m, aims to help front-line staff at the group’s Ladbrokes betting shops save more for their retirement.
Members of the £197m Hilton Group Pension Plan who joined before 2002 contribute 6pc of pay in return for a pension of 1/60th of salary. More recent joiners pay 4.5%of their earnings in return for a 1/80th pension.
But Community head of organising Kevin Pass said hundreds of its members could not afford their contributions because they were only being paid slightly more than the minimum wage of £4.85 per hour.
“While the group is making millions, the individuals earning that profit are getting paid a pittance and cannot afford to pay into the scheme,” he said.
“The company should increase its own contributions or increase pay so these people have got money to pay into the scheme for their future.”
Pass said if the union could prove that more than 50% of Ladbrokes’ staff were Community members, Hilton would have to recognise the union and agree to take part in talks.
A Hilton Group spokeswoman said: “We are proud of the fact we are one of the few FTSE100 firms that offer a final salary pension to existing and new members.”
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