Phase two of the current two-year H&V Operative Wage Agreement - which was negotiated by HVCA and Unite the Union - includes what the parties describe as a pioneering and forward-thinking provision in relation to occupational pensions.
With effect from October 4 this year, all operatives employed under the agreement will have the right to participate in an employers' contributory pension scheme.

This will involve an initial employers' contribution of 1% of basic earnings above the Primary Earnings Threshold, currently set by Government at £110.00 per week.

The introduction of the pension provision - some two years ahead of such arrangements becoming a legal requirement on employers - follows an independent survey carried out among operatives covered by the agreement.

Responses received from almost 1,000 individuals employed by 34 HVCA member companies revealed that:

Although 61% of respondents had already made pension provision in addition to the normal state pension, 52% nevertheless favoured the introduction of a nationally negotiated scheme; and

Almost a third of respondents were prepared to contribute between 5% and 6% of earnings to an occupational pension.

As a result of these findings, a joint HVCA/Unite working party, which was established under the terms of the wage agreement, has developed an employers' contributory pension scheme suitable for incorporation into the Operative National Agreement.

Following a number of meetings, the joint working party came to a consensus on the design of the scheme - and that HVCA subsidiary Welplan Pensions should be appointed scheme provider.

HVCA head of employment affairs Peter Rimmer summarised the principles behind the introduction of the scheme.

'Pensions legislation is forcing the pace, with many experts in the field advising employers to incorporate appropriate provisions into their employees' terms and conditions now, rather than wait for this to become compulsory,' he explained.

'The introduction of a contributory employers' pension scheme into the Operative National Agreement will help to ensure that employers in the h&v sector are in the vanguard in this respect.'

For the trade union, national officer Tom Hardacre confirmed Unite believes strongly in the need for an imaginative approach to rewarding quality in the workforce.

'To retain and attract a world-class workforce, employment terms must reflect the skills and competences sought,' said Hardacre.

'Pension provision is a major issue for our members. This addition to the National Agreement opens the door to better provision for the future.'