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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."
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."
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