Plea to protect Alstom pensions

FORMER British employees of troubled French engineer Alstom have asked the Government to protect their pensions amid fears that the UK scheme may be forced into a wind-up.

Heavily-indebted Alstom has an estimated £435m shortfall in its UK fund, which has more than 20,000 members.

The Government intends to introduce a pensions protection fund in 2005/6, but former Alstom staff fear it could come too late.

Dave Wells, 55, works for a Lincoln-based business sold by Alstom in May to German giant Siemens. He has written to Pensions Minister Andrew Smith asking him to provide an interim safety net.

Smith replied that he is 'willing to listen to suggestions', but did not want to 'raise false hopes'.

Wells and the other Lincoln workers hope to transfer their pension rights to Siemens. He said: 'At the moment we are in extreme danger. My personal loss would be around £300,000. Can you imagine the trauma that would cause?'

Concern over Alstom's UK pension funds follows a number of high profile wind-ups. Thousands of people have lost large chunks of their pension entitlements, including former workers at steel firm ASW.

Danish-owned shipping firm Maersk last year wound up its UK pension funds leaving them with a deficit.

Now employers are protesting about the costs of a protection fund. Richard Greenhalgh, the UK chairman of Unilever, will today tell a CBI conference that current proposals are too expensive.

He said: 'The entire burden is placed on employers while the Government refuses to share any risk. Moreover, scheme members, as the ultimate beneficiaries, should at least share some of the cost.'

But TUC general secretary Brendan Barber said: 'The CBI is crying crocodile tears. Let's not forget it was employers who took pensions holidays.'