Pensions heartache for car plant workers
More than 40,000 car plant workers could lose their pensions.
11:02 23 July 2004
Workers at car parts firm Turner & Newall could lose their pensions contributions after the company's administrator announced that the pension fund faces a shortfall of around 875 million.
The fund, which has around 40,000 members, has been frozen by the administrators of Turner & Newall's US parent company, Federal Mogul.
Experts are now predicting that the scheme may be wound-up completely after auto parts company Federal Mogul filed for Chapter 11 bankruptcy protection. The US firm is now undergoing major restructuring.
Around 20,000 T&N workers could lose half their benefits, while a further 20,000 may see their payments frozen.
Federal-Mogul is facing potentially huge asbestos claims, acquired when it purchased T&N in the late 1990s. If the scheme is wound up, it will be the biggest closure of its kind.
A spokesman for the administrator, Kroll, said: "We wish to make it clear that the scheme is still open -- it hasn't terminated nor is it currently subject to winding up -- and we continue to hold discussions with all parties who have an interest in the future of the pension scheme to consider what the next steps should be."