Engineering news
The case mounted against Ford by former workers of collapsed automotive supplier Visteon in a bitter dispute over pensions will not be heard until 2013, PE has learned.
Campaigners from the Visteon Pension Action Group (VPAG) said progress in mounting the legal challenge, which is backed by trade union Unite against the US automotive giant, had been “painfully slow”. They also expressed concerns that the UK Pensions Regulator had dropped an investigation into the dispute.
Former workers at Visteon – the UK subsidiary of which collapsed two-and-a-half years ago with the closure of several factories – face cuts to their pensions of up to 60%. Visteon was spun out of Ford in 2000 and the Visteon pensioners have consistently claimed that Ford is liable for their terms and conditions of employment, including pensions. Ford and Visteon, which still operates in the US and other operations around the world, deny this.
Simon Harding of VPAG said the case against Ford was now expected to be heard in January 2013. The earliest 7- to 10-day slot a judge could find to hear it was then, Harding said. Ford and the campaigners were currently exchanging information and documents pertinent to the case.
“It's encouraging that the judge thought the case was of sufficient merit to warrant a longer hearing,” Harding said. “I wouldn't like to say we were optimistic though. We're encouraged obviously that the claim is going forward but every time we think we're making progress we get setbacks.
“For example, the Pensions Regulator told us he was dropping his investigation, which we don't understand.”
Bill Galvin, the Pensions Regulator’s chief executive, said he understood the decision was “disappointing” for the campaigners. He added: “The Pensions Regulator investigated in detail whether we could make a case that Visteon group companies in the US and Europe, or Ford, the previous owner of Visteon, should provide support for the Visteon UK pension scheme.
“The key events in this case – those the regulator would ordinarily investigate in cases of this nature – occurred some time before the regulator's powers came into force. An investigation of subsequent acts and events did not provide the regulator with sufficient grounds to exercise its powers.”
VPAG members are continuing to lobby MPs about their plight. Harding said that because Ford had “deep pockets” it was in an advantageous position compared to Unite as the legal challenge escalated.