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Workers at three BMW plants in the UK are staging a one-day strike in a row over pensions. The walkout, which is the first by BMW workers in Britain, is part of a wave of stoppages at the carmaker over the closure of a final-salary pension scheme. The Unite union, which organised the action, called it a last resort and accused BMW of "pension robbery". BMW urged the union to return to the negotiating table. According to Unite, picket lines will be in place for 24 hours at three BMW's plants: Cowley in Oxfordshire, where the firm makes the Mini Hams Hall in Birmingham, where it makes engines And Swindon, where it makes components. Workers at the Goodwood plant, which makes Rolls-Royce cars, are not walking out on this occasion. 'World class workforce' The workers are protesting against a plan to close a defined-benefit pension scheme in June and move workers to a contribution-based scheme - something Unite says could cost workers up to 160,000 in lost income. According to BMW, 67% of those affected by the changes who were eligible to vote backed the action. Unite general secretary Len McCluskey said: "BMW's refusal to discuss affordable options to keep the pension scheme open means that for the first time, its UK workforce will be taking strike action. "It is very much the last resort for a world-class workforce that takes great pride in making the iconic Mini and world-renowned Rolls-Royce motor cars and one which could have been avoided if BMW's bosses had been willing to negotiate meaningfully." BMW said it was "firmly open" to further talks. "We have been in meaningful discussions with Unite since September of last year and have put forward a number of options to help staff transition to the proposed new pension scheme arrangements," it said.
In January, the company reported that it will eliminate about 1000 jobs, mostly in human resources department, to curb rising expenses and streamline stores. We note that Bentonville, AR-based Wal-Mart, carrying a Zacks Rank #3 (Hold), has been grappling with near-term headwinds. Increased competition from traditional and online players and slowdown in international operations along with a strong dollar are hindering sales. The industry-wide weakness in the grocery/supermarket business is impacting Wal-Marts operations. The industry is grappling with food deflation, stiff competition, aggressive promotional environment and waning store traffic. Additionally, Wal-Mart is making huge investments in e-commerce initiatives to compete with the biggest online retailer, Amazon.com, Inc. AMZN. The acquisition of U.S. e-commerce company, Jet.com, in Sep 2016 marked a major step toward accelerating its online business. The acquisition has offered customers a massive online marketplace where they can purchase items at discounted prices.
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