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Pressure is growing on automotive giant Ford to answer the concerns of former workers at supplier Visteon over cuts to their pensions as trustees of the scheme formally called for a parliamentary inquiry into the matter.
Members of the Visteon Pension Action Group (VPAG) said past and present trustees of the company’s pension scheme had written to MPs last month calling for an inquiry. Former Visteon workers also demonstrated at Parliament for the second time before Christmas. Parliamentarians led by Stephen Metcalfe, MP for South Basildon and East Thurrock, have already grilled Ford managers, including Joe Greenwell, chairman of Ford in Britain, over the dispute. Ford has reportedly agreed to return to the Commons next month to answer MPs’ concerns.
The dispute is a long-running one and centres on the treatment of the Visteon pensioners following the collapse of the company’s UK subsidiary in April 2009. Some 3,000 former workers were affected and face cuts to their pensions of up to 60%. Visteon was spun out of Ford in 2000. The former workers say their terms of employment, including pensions, were guaranteed by Ford at the time of Visteon’s creation. Ford strongly denies this.
When Visteon UK collapsed, factories in Belfast, Enfield and Basildon were shut with the loss of 600 jobs. The aftermath saw factories occupied by staff conducting sit-in protests.
Siân James, Labour MP for Swansea East, had previously tabled an early day motion in Parliament expressing concern at the treatment of the Visteon pensioners. Sources believe Ford could be forced to take on a £350 million liability if legal action against the company is successful. Trade union Unite has mounted a legal challenge against Ford. Since then support among MPs has grown. Metcalfe is reportedly planning a meeting to discuss the dispute with work and pensions secretary Iain Duncan Smith.
Campaigners among the pensioners claimed earlier this month that the demise of Visteon had been “constructed” and the placement of the pension scheme into the Pension Protection Fund “orchestrated”. “We want to ensure that this cannot be repeated in the future by other such minded companies,” they said. They said Visteon had enjoyed too much control over the scheme, including weighting the trustee board in favour of “company-nominated” directors including the key position of chairman. Unite is expected to issue a writ against Ford over the dispute shortly. Meanwhile Metcalfe reportedly told VPAG campaigners that he was “amazed” that Ford had no involvement with Visteon after its creation. Ford is said to have contested some of the statements made by the MPs at the earlier meeting and was reportedly asked by the MPs to produce evidence to back up its position.
Simon Harding of VPAG told PE: “Metcalfe said it was evident that none of the present incumbents at Ford seem to have first-hand knowledge of the Visteon spin-off, and interestingly seem to have little or no documentation.” MPs, he said, were becoming increasingly interested in the legal aspects of the case as well as the moral dimensions.
He added: “It was exactly the same management in place before and after the spin-off and well-worn lines of communication between the companies would have still existed.
“Things seem to be swinging in our favour.”