Unite to Keep Pressure on Government to Make Sure it Delivers on Workers' Pensions

LONDON, March 8/PRNewswire/ --

- Attention: City, Economy, Industry, Pension Editors

Unite the Union will be scrutinising Government proposals which have just
been issued to Parliament, for major improvements to the 'Financial
Assistance Scheme' (FAS). The scheme was set up to compensate members of
failed pension schemes when their companies went bankrupt.

Unite will be pressuring the government to deliver its promise of
compensating 90% of pension losses and also bringing in other benefits in
line with the Pension Protection Fund (PPF)(see notes). These changes will
bring peace of mind to thousands of workers who had lost their pensions
through no fault of their own.

Unite believes that these proposals have come about as a result of the
union and its members continued campaign for justice.

Graham Goddard Deputy General Secretary of Unite said:

"Our members more than played their part in this campaign and I
congratulate them and our union for a tremendous outcome."

"We believe all our hard work and endeavour to achieve justice for our
members is about to pay off and 130,000 individuals and their families will
benefit."

"This was a campaign we could not afford to lose because of the serious
impact it would have had on our members who would have faced real hardship in
retirement."

"Unite will keep pressure on the Government as it publishes proposals in
Parliament for major improvements to the 'Financial Assistance Scheme' (FAS),
that have been achieved through a successful union campaign."

Unite took the Government to court in 2003 to achieve justice for its
members, and the action went all the way to the European Courts of Justice
(ECJ). We believe this action led to the introduction of the PPF and was
directly involved in the FAS coming in to being. Unite is pleased that
through its actions real change has come about, resulting in pension justice.

Editors notes

1. Unite (formerly Amicus) and Community unions issued a High Court claim
on behalf of over 1,000 pension scheme members of Allied Steel and Wire Ltd
(ASW) from Cardiff and Sheerness in a test case at the European Court of
Justice. Judgement was made in January 2007 and it was recognised that the
current amount of support being received by the affected workers was
inadequate.

2. The Pension Protection Fund (PPF) provides for pension scheme members
to receive 90% of expected pension benefits including payment at an early
pension scheme retirement age, tax-free lump sums, ill health or early
retirement benefits and dependants' benefits. There is also inflation linking
for post 1997 contributions. The ASW test case at the European Court of
Justice brought by Amicus and Community unions ensured that the benefits of
FAS funding were brought broadly in line with the PPF.

Source: Unite the Union

For more information please contact: Brian Gallagher on +44(0)7957995947 or Catherine Bithell on +44(0)207-420-8909

2008-03-08 14:27:13 0307607 PRNEWSWIRE