Unite takes Ford to the high court for 'misleading' workers over
their pensions
28 January 2011
Unite, Britain's biggest union, has lodged a claim in the high
court today (28 January) against Ford Motor Company over the
pension rights of staff who transferred to Visteon UK and
subsequently lost their jobs and some of their pensions after
Visteon UK went into administration in 2009.
Unite's lawyers are seeking compensation from the company for
allegedly providing 'misleading' advice to Ford workers who
transferred to Visteon UK. When Visteon went into administration in
2009 the company had a £350 million black hole in its pension
scheme, and Unite alleges that Ford is liable for this
shortfall.
Workers' were transferred from Ford to Visteon UK in May
2000. Broadly, workers 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 (see notes to editors).
Unite maintains that the information provided led the workers to
believe that, if they transferred their Ford benefits to the
Visteon UK pension scheme their pensions would be secure. In 2009,
610 workers lost their jobs and some of their pension when Visteon
UK went into administration.
As it is, they will get only PPF (pension protection fund) level
benefits for any accrued Ford pension rights that they transferred.
They will only get PPF level benefits for their accrued VUKPP
(Visteon United Kingdom pension plan) pension rights.
Unite's national officer, Roger Maddison said: "The fight for
pensions’ justice begins in the high court. Unite believes Ford has
a legal and a moral obligation to the thousands of ex employees who
paid into its pension scheme all their working lives believing this
would provide a financially secure pension in retirement.
"Ford has announced $8 billion in profits, it will take a
fraction of this to give the men and women who lost part of their
pensions justice.
"Hundreds of workers, many of them close to retirement, were
sacked at very short notice and lost large parts of their pensions.
We believe Ford misled many of these workers leading them to
believe their pensions were safe with Visteon. Ford failed to
clearly set out the risks associated with transferring the assets
staff had built up with Ford - now many of these workers face
vastly reduced pensions."
ENDS
Contact: Ciaran Naidoo on 07768 931 315
Notes to editors
The following is an extract from a letter from Ford Motor
Company to the workforce on 17 April 2000
“Your accrued pension rights will be protected. Specifically it
has been agreed that Visteon UK Limited will establish pension
arrangements that mirror those which now exist in Ford. This means
that:
(i) After transfer to Visteon UK
Limited’s employment, you will be able to join the new Visteon UK
Limited pension scheme and continue to earn pension benefits for
future years on the same basis as you would have done at Ford.
You will also be able to transfer to the new
Visteon UK Limited pension scheme the pensionable service that you
have earned in the Ford pension scheme for the period of your past
employment with Ford, on a year for year basis.
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