No Image Available

Annie Hayes

Sift

Editor

Read more about Annie Hayes

Car parts makers to get their pensions

pp_default1

Under a deal announced yesterday, tens of thousands of workers at car parts maker T&N look set to get their pensions, after a new deal offered by its US owner was accepted by unions.

It had been thought that up to 40,000 workers would be left without their full pension – or any pension at all – after parent company Federal Mogul filed for bankruptcy.

T&N’s pension fund had been hit hard by asbestos claims in the 1990s and went into bankruptcy protection in 2001. The fund had been frozen by Federal Mogul’s administrators and the scheme had faced being wound up, due to a £300m shortfall the parent was unable to meet.

Under the latest offer it is understood that Carl Icahn, Federal Mogul’s largest creditor, is to pay nearly £14m into the scheme annually for three years after the parent company emerges from liquidation.

Officials from the GMB, TGWU and Amicus have declared that they are “satisfied the deal is workable,” according to a recently released statement.

No Image Available
Annie Hayes

Editor

Read more from Annie Hayes
Newsletter

Get the latest from HRZone

Subscribe to expert insights on how to create a better workplace for both your business and its people.

 

Thank you.

Processing...
Thank you! Your subscription has been confirmed. You'll hear from us soon.
ErrorHere