Workers at ITN, the company that provides news for ITV1 and Channel 4, have forced their management to compromise on their controversial proposal to cut pensions and extend the retirement age from 60 to 65. Staff at the company were especially angered when the management threatened to impose the provocative "final offer" without agreement.

In response the unionised staff balloted for two 24-hour strikes to take place on January 16th & 23rd.

If the strikes had gone ahead, it would have meant over 25% of ITN's 795 journalists, cameramen and technicians walking out at midnight on the two nights.

Unlike many other UK companies, the ITN pension scheme is not in trouble, but managers have been told that if staff are to continue building up pension rights at the current rate, the company must contribute an extra 6% of its payroll.

The management clearly felt this was unacceptable and proposed a pension cut from 1\50th to 1\60th in accrual, a cut in maximum interest from 5% down to 2.5%, and the 5-year extended retirement age. Most workers were somewhat tolerant of the cut in accrual, but felt the cut in interest and the extended retirement age were steps to far.

There are many workers who feel a need to work past 60, and now have a right to do so under the new age discrimination legislation, so most see compulsory extension to 65 as a clear attack on living standards. Especially given that the average lifespan in Britain is only around 75.

ITN managers underestimated the workers telling them to just accept the changes without discussion. Staff felt this was intolerable. Now management has backed down, reaching a halfway agreement with the cap on interest being withdrawn, and retirement extended to 63. In addition the staff will have to pay an extra 2% per year in contributions.

If accepted, the new proposals will come into effect on 1 April 2007.

BECTU's Assistant General Secretary Gerry Morrissey commented: "Clearly ITN management assumed our members would back down over this issue.

However, they underestimated the strength of feeling amongst members over their pension scheme and we are pleased ITN has been forced to come back to the negotiating table with a significantly better offer."

But many workers will feel uneasy, as ITN joins a long list of broadcasting industry employers who have moved to cut pension benefits - the BBC effectively closed its final-salary scheme to new staff in November, and ITV, with an estimated £300 million deficit in its fund, has warned that changes also will have to be made to save money.