Aegon has relented to union pressure and agreed to offer staff earning £25,000 or less a £250 pay increase next year.
The decision follows Unite’s rejection of the original proposal to freeze wages for all UK staff in 2011. Union members have accepted the new terms offered.
Aegon UK HR director Gill Scott says: “We are pleased to have successfully completed our pay negotiations. Whilst we are awarding a pay award to lower paid employees, we are still able to deliver considerable cost savings for the organisation.”
The pay restraint deal forms part of ongoing restructure plans aimed at reducing operating costs across the business by 25 per cent by the end of next year.
This follows the FSA’s decision to fine Scottish Equitable £2.8m for causing significant consumer detriment through poor administrative procedures. Scottish Equitable, which now trades under the Aegon brand, was also ordered to pay consumer redress of around £60m.