Usdaw has said that it is “angry and disappointed”, after Morrisons confirmed that it would push ahead with changes to its pension contributions policy.

The supermarket chain recently consulted members on plans to lower its employer pension contributions in response to the government plans to expand the scope of auto enrolment (AE).

Under the proposals, the current 5 per cent employer contribution would be cut to 3 per cent from March 2025, while at the same time, employee contributions would increase from 3 per cent to 5 per cent.

There would also be a transitional period from March 2024, with 4 per cent contributions paid from both employer and employee contributions during this time.

Morrisons will also withdraw the option for hourly paid employees to step up to a matching 5 per cent contribution.

However, Usdaw said that it is "angry and disappointed" that Morrisons has not accepted any of the union's counter proposals, arguing that the changes are not yet needed given the lack of firm timings on the government's plans to extend the scope of AE.

Usdaw national officer, Darren Matthews, stated: “After a series of consultation meetings with Morrisons, it is deeply regrettable that they are pressing ahead with proposals to seriously reduce the terms of the pension scheme.

“The company claims that these changes are due to upcoming government reforms, despite the fact that there has been no actual timetable announced for these changes.

"As such we do not believe that Morrisons need to make these changes and we are not aware of any other retailers who are looking at similar reforms.

“We are angry and disappointed that Morrisons has not accepted any of our counter proposals and we will be looking at every measure available to us to persuade management to review their position and come back with a fairer offer.”

However, Morrisons previously clarified that the overall amount of money the company is putting into colleague pensions will actually be going up when broader changes extending auto enrolment to lower earners and younger workers come in.

Morrisons has been contacted by Pensions Age for comment.

---