Fight goes on for pension justice

Former Ford employees made redundant by Visteon UK in 2009 are continuing their fight for pension justice.

The case is different from that of VES employee, but has its roots in the spin-off from Ford in 2000.

Three thousand workers lost their jobs at sites in Basildon, Enfield and Belfast in 2009 when Visteon UK went into administration. Although successful in securing an improved redundancy settlement, following high-profile sit-ins, they lost a substantial chunk of their pension entitlement. The losses are due to the fact that the government’s Pension Protection Fund (PPF), which provides protection when firms go bust, only covers a capped proportion of employees’ pensions.

According to the Visteon Pension Action Group, around 1,000 current pensioners have already had their pension reduced to PPF levels “which in some cases will mean a reduction in excess of 50% for the rest of their lives”. This is despite assurances given about “mirrored” terms and conditions and safeguards when Visteon was first spun off from Ford in 2000.

The campaign looks set to continue through the law courts. The Unite general union is backing the legal action, due to be heard in November 2014, unless Ford reinstates the pension promised to its former employees.

The action is supported by an All Party Parliamentary Group led by the Conservative MP for South Basildon and East Thurrock, Stephen Metcalfe. More than 50 MPs who have ex-Visteon pensioners in their constituencies have backed the campaign.

www.visteonpensionactiongroup.co.uk