Kroll faces union fury over Federal Mogul pensions

Crunch talks between trade unions and administrator Kroll over the future of 40,000 pensions at Federal Mogul's subsidiaries have failed to assuage union fury.

Written by Brian Moher

Link: Federal Mogul employees face pension crisis

Dick Croft, an officer at trade union Amicus, said that members were still angry over the lack of consultation undertaken by Kroll before it froze pension fund contributions by the British subsidiaries of Federal Mogul. Croft said: 'It does appear to be callous ... I don't have any apologies for using that language as I think it reflects the views and the feelings of our members.'

The independent trustee of the pension fund of subsidiary Turner & Newall, the scheme for Federal Mogul's UK employees, suggested the move had increased the likelihood of the scheme having to be wound up.

Should that happen, the closure would be the biggest of an under-funded pension scheme for 10 years, with an estimated deficit of £875m. Around 20,000 people could lose half their benefits.

Federal Mogul workers, such as Nigel Foster at the company's Bradford plant, have been protesting over the threat to their pensions.

Kroll described the pension fund as 'one of the major challenges' of restructuring Federal Mogul. It said it had been left with no choice but to freeze payments after seeking guidance from the High Court, and claimed consultation had been impossible.

Enjoyed this article? Help spread the word:

Comments

Reader comments for this story

White papers

Related jobs

Spotlight

Profile: Ian Powell, chairman of PwC

Being number one isn't enough for PwC chairman Ian Powell....

Credit crunch special: guiding business through the storm

The downturn is hurting and recession looms. Will accountants be...

Beat the credit crunch with Young Professional

Latest issue features a guide to advancement during economic uncertainty,...

Find your next job

Find your next job
Salary Checker

Newsletters

Sign up here for the very latest news delivered to your inbox. Choose from the following options:

Search white papers

Search white papers

Have your say

Would rumoured Treasury moves to abolish stamp duty do anything to help the housing market?
Yes, scrapping stamp duty has been a long time coming
No, any move is far too little, too late

Job of the week

More finance jobs...

Your next job