Visteon pensioners’ plight now with UK minister
Posted on 26 Tachwedd 2009

Bethan with Visteon workers at a protest in Swansea in the autumn. She will be joining them at another protest next week
BETHAN Jenkins AM has received assurances from First Minister Rhodri Morgan that the case of 700 former car workers fighting for their full pensions is now being considered by Yvette Cooper, the Secretary of State for Work and Pensions.
Responding to a question from Ms Jenkins, the Plaid Cymru AM for South Wales West, over what assurances he had received from the UK Government after he made representations to the Secretary of State for Wales over the plight of Visteon pensioners, Mr Morgan told the Assembly that Peter Hain had written to Ms Cooper, and was now waiting to hear back from her.
Former workers at Visteon could lose as much as half of their entitlements after the company, which was spun out of Ford in 2000, applied to enter the government-administered Pension Protection Fund (PPF).
Ms Jenkins said: “The First Minister acknowledged that Visteon workers have been disadvantaged and that we must do all we can to help them. The Visteon Pensions Action Group is not only claiming that Ford reneged on a promise over pensions made when Visteon was created. They also argue that a £1.3bn black hole in the PPF makes the scheme unsustainable, which would make the paying out of their pensions at least difficult, if not impossible.
“Mr Morgan felt that meeting Visteon workers, as I had requested, would not advance their case. I will now call for a meeting with Peter Hain to further impress upon him the seriousness of the situation for many of these workers, who have done nothing more than work hard and save hard, sometimes for up to 30 years. They deserve better.”
Visteon, one of the world’s largest automotive suppliers, was spun out of Ford in 2000. By 2004, it employed 70,000 staff at over 200 sites in 27 countries around the world, including the UK, and turned over $18.7 billion in sales.
In 2005, Visteon offloaded 17 unprofitable plants and six offices. In 2006, Visteon delisted from the New York Stock Exchange after its share price dropped to two cents. On March 31 this year, the company’s UK operation went into administration with debts of £669m. Some 560 staff at plants in Enfield, Belfast and Basildon were given less than an hour’s notice of the redundancies.
Those workers then occupied their factories, claiming that they had been given guarantees on pay and conditions when Visteon separated from Ford. Several weeks of protest led to assurances from both Ford and Visteon that severance packages would be improved.
However, shortly afterwards, the Visteon UK Pension Fund had entered the assessment period for the Pension Protection Fund.
The PPF had been established by the Government following a long campaign involving Cardiff steel workers and Welsh politicians, after the collapse of Allied Steel and Wire in 2002 left those workers without pensions.
However, the 3,000 ex-employees of Visteon UK – including 700 in Swansea and workers who have been paying into a Ford pension fund for up to 40 years – have since discovered that they may receive less than half of what they are owed if they are paid through the PPF.
The Visteon Pension Action Group is now planning to take Ford to court, claiming it was promised safeguards for the fund when Visteon was spun off. It also argues that the PPF may well be unsustainable in the long run. The pensions regulator is also examining the group’s claims.
- This story also appeared in the Western Mail








