HUNDREDS of York workers are to begin a consultation process with Nestlé as the chocolate giant reveals proposed changes to its pension scheme.

Nestlé UK has advised staff it proposes to close its defined benefit pension scheme due to cost and risk implications.

Following announcements today, (Thursday) unions have said strike action looms should the plans go ahead.

The pension scheme has around 7,600 staff across the UK paying into a pension pot, with the promise of a defined monthly payment upon retirement, based on salary and service.

The proposals are to close the scheme in favour of a defined contribution scheme, in which employees pay a specified contribution into their own fund, with their take-home pension amount subject to how much is contributed and changes in interest rates.

Many of the 2,155 York employees working at the company's site in Haxby Road, including factory, office, logistics, product technology centre and Nespresso staff are set to be affected.

Nestlé said it is "with regret" that the proposals are being put forward, and that the costs and risks of providing a defined benefit scheme have "continued to increase substantially" in recent years.

Fiona Kendrick, chief executive and chairman of Nestle UK and Ireland said: "We are very sorry that we have to propose these changes but under the circumstances we believe it is the right option."

Julia Long, Unite national officer, said: "Five years ago they agreed to pension changes in good faith on the understanding that their pension would be secure for the future.

"Now Nestle is tearing up their contracts with their future with many workers facing being worse off in retirement. We will not stand by and let that happen and would urge Nestle to think again and honour its past promises."