Tuesday, 24 August 2010

Legal Action Over Visteon Pensions

Unite, Britain's biggest union, has warned Ford Motor company of legal action over the pension rights of staff who transferred to Visteon UK and subsequently lost their jobs and pensions after Visteon UK went into administration last year.

Workers' employment was transferred from Ford to Visteon UK in May 2000. Employees had to decide whether to leave their accrued pension benefits in the Ford pension scheme, or to transfer them to the Visteon pension scheme. Unite believes the information that Ford provided to these workers in order to assist them in deciding whether or not to transfer their accrued pensions benefits was misleading.
The belief was that if they transferred their benefits to the Visteon UK Pension Scheme their pensions would be secure.
However in 2009, 610 workers lost their jobs and some of their pension when Visteon UK went into administration.

They will now get only Pension Protection Fund level benefits for any accrued Ford pension rights that they transferred and only PPF level benefits for their accrued VUKPP pension rights.
The Visteon Pension Action Group demonstrated at the  Unite Policy Conference in Manchester.
Tony Woodley Unite Joint General Secretary addressed the crowd.
“The support of this union is 100 percent behind you.We’re working on a legal angle we can use against Ford.”

But Rob Williams Convenor at the former Visteon plant in Swansea would like to see the campaign stepped up.
"We want the union to immediately put a writ to Ford and make them pay up,”
The workers are faced with losing up to half of their pension benefits.
Mike Gard of the Visteon Pension Action Group said: "We had hoped that it wouldn't come to this, that Ford would recognise the hard and diligent work that its staff put in.

"We now have men and women considering giving up the enjoyments of retirement, such as holidays, which they worked so hard for, considering selling their homes and buying smaller houses and even returning to work to make ends meet."


  1. This comment has been removed by the author.

  2. Very good post.

    Legal action first, is a good strategy.

    OT: I have problems with my browser. I'll return the favor, and add this blog to my blogroll tomorrow.

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