Unions challenge government over bankrupt pensions procedures

Two
trades unions are to file a lawsuit against the Government today on behalf of
former employees of Allied Steel and Wire (ASW), whose pensions were
dramatically reduced when the company went bankrupt last year.

ISTC,
the community union, and manufacturing union Amicus are challenging the
Government on human rights grounds under European law after two pensions funds
were left with significant shortfalls after the closure of ASW.

Around
1,000 staff who lost their jobs were told they would only get a quarter of the
promised benefits when they retire.

The
unions will serve a letter of intent on pensions minister Malcolm Wicks, at the
Department for Works and Pensions in Whitehall, this afternoon.

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The
unions believe that if successful, the action could open the doors for tens of
thousands of claims by people who have lost out after their employers went
bust.

By Michael Millar