‘Congratulations, Ford – now give your workers the pensions they’ve earned’
Posted on 5 November 2009
Bethan Jenkins AM has welcomed the news that Ford has returned to the black, but with one proviso – it should now properly pay the pensions that it owes to former Visteon workers.
The car giant has just posted pre-tax operating profits of $1.1 billion (around £665m), its first for nearly two years. However, pension holders – including 700 in Swansea – believe they could lose up to half their entitlements after their company Visteon, a car parts business spun out of Ford in 2000, went bust earlier this year and an application was made to enter it into the Pension Protection Fund.
Plaid’s Bethan Jenkins said:
“Well done, Ford. This shows that the car industry can find its way back to profitability. Now that it has, it should meet its obligations. Top of the list should be the £140 million shortfall in the Visteon pension fund, which will now cost an extra £100 million to fully fund.
“Visteon thankfully sold its Swansea operation to Linemar only months before Visteon collapsed. But that’s no good to 700 former staff who worked hard and saved assiduously and now face losing half their pension income. It is difficult to imagine how tough that could be for those involved.
“The Visteon Pension Action Group is taking Ford to court to compel it to comply with safeguards it made at the time Visteon was established. Of course, Ford could sort this tomorrow with the profits it has just posted.”
Visteon’s history
• 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.



