"Pensions robbery" angers T&G

Around 60,000 workers have lost out on their pension, after their company has gone bust.

11:59 07 May 2004

Around 60,000 workers have lost out on their pension, after their company has gone bust.

This is according to the Transport and General Workers' Union who have committed themselves to backing the creation of a compensation fund for those affected.

The T&G yesterday had their sights firmly fixed on the government, calling the problem a "pensions robbery", and "scandalous".

This plan follows Frank Field's amendment to the Pensions Bill, which has gained support from all political parties.

Tony Woodley, the general secretary of the T&G says the "government must now demonstrate the political will to act and compensate those who have lost out.

"Many union members have spent their working lives paying into a scheme believing it would provide security in retirement, only to lose their pension without compensation when the company goes bust."

Mr Woodley cited examples of workers at Lister Petter, Richards of Aberdeen, Merchant Ferries and United Engineering Forgings being among the 60,000.

The Pensions Bill will create an insurance fund for workers who have lost their pension after their employer goes bankrupt, however as it stands it offers nothing to those whose pensions have already been lost in this way.

The T&G, along with other unions and pensions campaigners, are calling for one-off compensation fund for those who have already lost their pension.