Steel union takes Government to court over pensions shortfall

The
main steel union is to sue ministers for failing to protect members of
occupational pension schemes, in a landmark case that could cost the Government
up to £2.5bn.

Community,
the metal and textile workers’ trade union, said the lawsuit could set a precedent
by enabling 65,000 people, who lost pension benefits after their employers went
bust, to seek compensation.

The
union claimed that a £400m government compensation package for such people,
announced in May, was inadequate.

Community
said it would present its case to the High Court in November and ask the judge
to refer the case to the European Court of Justice in Strasbourg.

The
Department for Work and Pensions said it had no case to answer.

“We’ve
met our obligations under Article 8 of the Insolvency Directive as successive
governments have done,” a spokeswoman told the Times newspaper.

By Daniel Thomas

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