Former Visteon workers will receive pension compensation from Ford, it was announced today.

Unite said it had concluded an agreement with automotive company, covering around 1,200 ex-workers who saw their pension entitlements slashed when Visteon entered administration in 2009.

When Visteon UK was spun off from the Ford Motor company, employers transferred from Ford’s pension scheme into the Visteon UK pension fund on the understanding their pension rights would be unaffected. Due to Visteon entering administration, workers lost up to 45 per cent of their pension entitlements.

“The settlement would avoid further expense for participants in the case and will settle the legal claims these individuals have made against Ford,” Unite said.

“Unite and Ford have been involved in lengthy but constructive discussions to reach a positive where a settlement has been offered.”

Speaking during Prime Minister’s Questions, Prime Minister David Cameron said “this is a good development for pensioners and all those who played a role”.

“They are to be credited for the work they have done with Ford to make sure we get this justice.”

In December Minister for Pensions Steve Webb said “it is quite clear that no blame or criticism could possibly attach to the workers whose pensions were transferred across”.

“They are clearly the innocent parties in all this,” he said.

Shadow pensions minister Gregg McClymont said “Ford is a company with a strong imprint in the UK”.

“Unless the public are confident that Ford will play by the rules, then there could be a negative impact on the brand. The need for proper independent advice on pension transfers is essential.”

Share Story: