Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Unions raise pension compensation pressure

UNIONS are stepping up pressure on the Government to compensate workers left with worthless pensions due to company insolvency.

Research from Amicus and the Iron and Steel Trades Confederation shows that the cost of compensating up to 60,000 workers could be just £76 million a year.

The unions launched the campaign after the high-profile collapse of steel firm ASW in 2002 left thousands of former staff without pensions. Ex-employees of contractors, including Ballast and Melville Dundas, which both failed in 2003, have also lost out.

The Government has introduced legislation to protect the pensions of staff yet to retire, but has not extended this to workers from firms already insolvent.

Pensions expert Dr Ros Altmann said: 'Compensation would be unlikely to cost more than £76 million a year - we spend £14 billion a year on tax relief for pension contributions for non-state pensions.'