The Trades Union Congress ( TUC) has backed calls from its members for a new law on pensions, to prevent what they see as the threat of "pensioner poverty" as company schemes dwindle.

The TUC wants to force all companies to provide more substantial pension schemes, with a 10% contribution from employers and 5% from employees.

It also wants to make it compulsory for workers to join the schemes and for pension pay to be given the same level of protection as current pay.

Members said employers had reduced pay and conditions to their worst level since the Second World War, by not contributing enough to new pension schemes.

	:	Trade unions guide
The big unions at TUC 2002

In an emotive debate at the Trades Union Congress in Blackpool on Monday, union leaders said the government should act immediately to help the millions of people without work pensions.

A union member also warned that the pensions crisis could hit the government as hard as the poll tax did the Conservatives.

The general secretary of the Iron and Steel Trades Confederation (ISTC) Michael Leahy, told the conference: "The government must act to prevent future generations of British pensioners being poorer than their parents and even their grandparents".

New rules

The TUC also wants to make it compulsory for workers to join the new schemes and for pension pay to be given the same level of protection as current pay.

It is also calling for the government to create a fund to protect pensions in case a company goes bankrupt, and for the government to give companies better tax breaks on pensions.

The TUC deputy general, Brendan Barber said he expected to see more strike action protesting against the closure of final salary schemes.

Counter claim

The CBI has responded to union claims by saying that the rising cost of final salary pensions had forced employers to look at other options.

Digby Jones, the director general of the CBI, described threats of protest strikes as a " knee-jerk reaction".

He added: "I didn't think that this was what British business, British employers and British unions would have to put up with in the 21st century".

But TUC claims companies "seek to fatten up their margins by paying less and offering poor terms on pension scheme membership".

General secretary John Monks said: "If people are messing around with pension rights, I consider that a strong case for strike action".