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| Version 2 | Version 3 |
|---|---|
| Judges rule on pension schemes | Judges rule on pension schemes |
| (about 2 hours later) | |
| Steelworkers who lost out when their final salary pensions collapsed have failed in their bid to force the UK Government to make up the shortfall. | Steelworkers who lost out when their final salary pensions collapsed have failed in their bid to force the UK Government to make up the shortfall. |
| European judges said pension rules were "inadequate" but said it was up to British courts to decide if the government had to pay out. | European judges said pension rules were "inadequate" but said it was up to British courts to decide if the government had to pay out. |
| Around 1,000 Allied Steel and Wire (ASW) workers lost pensions when the company was declared bankrupt in 2002. | Around 1,000 Allied Steel and Wire (ASW) workers lost pensions when the company was declared bankrupt in 2002. |
| Unions had claimed the government had failed to protect the workers. | Unions had claimed the government had failed to protect the workers. |
| The European Court of Justice ruling on their case said: "Member states are not required to finance rights to old-age benefits under supplementary pension schemes themselves in the event of the employer's insolvency." | The European Court of Justice ruling on their case said: "Member states are not required to finance rights to old-age benefits under supplementary pension schemes themselves in the event of the employer's insolvency." |
| It is also a vital judgement in restoring peoples faith in the pensions industry Derek Simpson | |
| However, the case will now go back to the High Court, which the judges said had the authority to rule that people who have lost out should be compensated. | |
| The Amicus trade union, which is a party in the case, said it was "confident" of persuading the High Court that compensation was due. | |
| General Secretary Derek Simpson said: "This judgement vindicates our decision to take this case all the way to the ECJ. | |
| "We are confident that when this case returns to the UK High Court, our arguments will be upheld and our members who, through no fault of their own, lost all or substantial parts of their pensions, will be fully reimbursed. | |
| "It is also a vital judgement in restoring peoples faith in the pensions industry". | |
| European judges | European judges |
| ASW staff in Cardiff and Sheerness in Kent, lost their jobs and most of their pensions when the firm went under. | ASW staff in Cardiff and Sheerness in Kent, lost their jobs and most of their pensions when the firm went under. |
| The UK Government argued it has done all it was required under EU law. | The UK Government argued it has done all it was required under EU law. |
| An EU insolvency directive from 1980 requires member states to take measures to protect employees' pensions. | An EU insolvency directive from 1980 requires member states to take measures to protect employees' pensions. |
| The case was referred to the European judges, who sit in Luxembourg, by the UK's High Court in November 2004. | The case was referred to the European judges, who sit in Luxembourg, by the UK's High Court in November 2004. |
| Last year, the advocate general - who advises the court's judges - said although the UK had flaws in its protection for workers who lost pensions, the breach was not serious enough to trigger the government's liability under EU law. | Last year, the advocate general - who advises the court's judges - said although the UK had flaws in its protection for workers who lost pensions, the breach was not serious enough to trigger the government's liability under EU law. |
| Amendment | |
| Unions representing the ASW workers said the case has implications for about 125,000 people across the UK who lost pensions following bankruptcy. | Unions representing the ASW workers said the case has implications for about 125,000 people across the UK who lost pensions following bankruptcy. |
| The court action was brought jointly by the unions Community and Amicus. | The court action was brought jointly by the unions Community and Amicus. |
| A spokesperson for Community confirmed that Julie Morgan, Labour MP for Cardiff North had agreed to table an amendment to the Pensions Bill currently before Parliament. | |
| Ms Morgan has many ex-ASW employees amongst her constituents. | |
| The former steelworkers' plight led the UK Government to set up a £400m Financial Assistance Scheme to protect pension rights when a firm goes bust. | The former steelworkers' plight led the UK Government to set up a £400m Financial Assistance Scheme to protect pension rights when a firm goes bust. |
| This was included in a new pensions bill, published in 2004, but there was disappointment that the legislation was not retrospective. | This was included in a new pensions bill, published in 2004, but there was disappointment that the legislation was not retrospective. |