First Group, which runs buses across the Bradford district, has signed a new deal with its workers to allay fears over pensions.

Nearly 600 workers at First Group across Bradford are to benefit from the new agreement for both existing and new staff.

Both sides have agreed to pay in more contributions to the pension funds.

Phil Bown, the Bradford-based T&G union regional industrial organiser who led the ten-month negotiations for the unions, said, "This is a groundbreaking national agreement which will have resonance throughout the bus industry.

"The company has worked hard with us to put in place a long-term, affordable solution to one of the pressing issues in the modern workplace. We believe it will go a long way to retaining staff in what is a very competitive industry."

Ian Davies, Divisional Direc-tor of First Group, who led the talks for the company, said: "This agreement gives us a good platform for the future. We believe what we have agreed after careful negotiation is important to the industry as well as First Group."

The agreement will provide three schemes - a final salary pension for all existing members of the current schemes within First Group, a career average scheme for all new employees coming forward, and a money purchase option for any employee wishing to take it.

The final salary and career average schemes will be based on 60/40 employer/employee contributions and three rates of contributions - silver, gold and platinum - will be offered.

The agreement also provides a facility for all new employees to pay into a Stakeholder/AVC Scheme in the first two years of their employment.

The agreement came into effect on April 6.