Postal workers threaten 'long and bitter' strike to save their gold-plated pensions

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Unions are furious at Royal Mail's plans for an overhaul of one of the country's largest and most generous pension schemes.

The threat comes just a few months after one of the biggest strikes to hit the service in years.

The company's proposals will affect some 190,000 existing workers, as well as new recruits.

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Last time: Postal workers went on strike last summer and are threatening to do so again

If implemented, they will mark a watershed for the public sector, which has jealously guarded its final salary pensions as similar schemes disappeared rapidly from the private sector.

Under the plan, Royal Mail's final salary scheme will close from April 1.

Existing workers will be switched into a less lucrative scheme, based on "career average earnings" rather than final salary.

In a further blow, they will have to work until 65 to get their full pension, compared to 60 at the moment. Workers' contributions of six per cent will not be raised.

The biggest losers will be new recruits, who will have to wait a year to join the company pension.

To make matters worse, they will get a "defined contribution" plan, which offers less security than the current scheme.

Royal Mail insists it has no choice because of a £5billion black hole in its fund, one of the biggest in Britain.

It says it is costing the firm about £850million a year, one of the largest pensions bills faced by any employer.

The Unite union, which represents around 10,000 Royal Mail managers, accused the company of "asking for too much too soon". It is recommending members reject Royal Mail's proposals.

Jon Millidge, a Royal Mail director, said the company was trying to give "the best possible pension plan it can afford".