Anger: Cridland

The CBI has hit back at the TUC's demands that bosses halt their cutbacks of pension schemes.

Claims by TUC leader John Monks that firms are ditching final salary pension schemes in a bid to increase profits were rejected by the CBI on Monday.

Its research claimed the schemes were being downgraded because of "spiralling" costs.

The CBI's deputy director general John Cridland urged politicians to bring the issue higher up the agenda as many firms are finding it difficult to maintain traditional provision.

The CBI's research found that 24 per cent of companies had ended traditional final salary scheme in the last five years.

Cridland slammed Monks' demand for compulsory contributions by companies as unrealistic. "It would only exacerbate the real problem which is the falling value of the stock market," he said.

"Unions must stop playing the blame game if they want to generate constructive proposals as well as headlines."

Ahead of the TUC conference in Blackpool, Monks launched a broadside against business.

The union chief slammed corporate Britain's moves to abandon final salary pension schemes as "a disgrace" and called for urgent action to stem the crisis.

Monks, who has a reputation as a moderate with Blairite sympathies, said the new wave of union militancy had been triggered by boardroom sleaze and the abandonment of pension schemes despite high profits.

"The way they are bailing out of decent pension schemes is a disgrace," he told the Observer.

"Fund managers are demanding the end of good-quality pension schemes because they don't give shareholders a good enough deal. I've heard from companies who are keeping their pensions schemes but have been told by fund managers to get rid of them when there's absolutely no need."

Monks warned many workers would face poverty on retirement because the schemes replacing the current arrangements were sub-standard.

He took the unusual step of describing himself as a militant on the issue of pensions and would support any workers striking to save final salary schemes.

"The blame is in Britain's boardrooms and the way that employers have accelerated the stampede away from final salary schemes which has been a major blot on the reputation of corporate Britain."

Union boss Roger Lyons, the co-leader of Amicus, also signalled that patience is running thin.

"One of the richest economies in the world is transforming its future senior citizens from comfortable old age into poverty," he said.

Steve Webb, the Liberal Democrat's pensions spokesman said the TUC was right to put the issue on the agenda.

"Most employers recognise the importance of looking after their employees. This should extend to providing them with something to live on in old age. It is reasonable to expect companies to provide good occupational schemes," he said.

Webb argued that the government should step in if companies are unable to provide for its employees.

"It is vital to ensure that employees are protected against under performing funds being wound up. Employees rights are woefully inadequate when such schemes are closed. The government has had years to put this right and must get its house in order as soon as possible," he said.

But an olive branch could be offered by ministers in a bid to avoid a public row with key supporters.

The Independent on Sunday claimed trade and industry secretary Patricia Hewitt is considering giving trade unions the right to include pension rights in collective bargaining as part of wage deals.