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| Stephen Metcalfe with members of the Visteon Pensioners Action Group |
“Ford
has a moral responsibility for the Visteon pensioners”, that was the verdict of
a group of MPs yesterday during a Westminster Hall Debate.
Members
of Parliament from across the Country and from across the political spectrum
convened in Westminster Hall to discuss the plight of Visteon pensioners and to
encourage Ford Motor Company to exercise its duty of care to its former
employees.
Visteon was the automotive parts division
of Ford Motor Company that was spun off from Ford in 2000. The UK arm
(Visteon UK) subsequently went into administration in 2009 resulting in the
loss of over 500 jobs and leaving many ex-employees with either reduced or
frozen pension rights.
In support of the pensioners, earlier this
year an APPG was established with a view to looking at the background of the
collapse of Visteon, the effect it had on its pensioners and ex-employees and
to look at whether Ford has a duty of care to its ex-employees.
Under
the separation terms, Visteon employees were promised mirrored terms and
conditions and ‘lifetime protection’ of their pensions. But, when the company
went into administration in 2009 it emerged that many would have heavily
reduced pension rights – sometimes up to a staggering 45%.
Despite
being ‘spun off’, Visteon remained dependent on Ford for 90% of its business
and the Visteon employees received no new contracts. With many suspecting it
had been set up to fail.
Recently the new CEO of Visteon Corporation in the US, Tim Leuliette, when asked “Did Visteon
have a chance when it was spun off?” answered simply “NO. The labour cost
issues, the burden and the overheads were just so out of line with the reality
that it was almost comical. It just wasn't going to work. And it didn't
work. I think we all knew that. It was sort of like when you've got
an uncle you know has got a problem but no one in the family wants to talk
about it.”
Visteon
UK failed to make a profit in any year of its existence. By the time it ceased
trading, its debts totalled nearly $1 billion, leading many to suggest that the
spin off was merely Ford dumping a liability whilst ensuring its own balance
sheet remained clean.
Mike
Freer, MP for Finchley and Golders Green, who secured the discussion, said:
“Anyone who has gone through the documents that the Visteon pensioners have
been able to secure will see that there is a clear audit trail showing that
Ford knew exactly what it was doing. It gave guarantees that it is now seeking
to renege on.”
Geraint
Davies MP for Swansea West and Vice Chairman of the All Party Parliamentary
Group (APPG) in support of the Visteon Pensioners, added, “Ford has a moral
duty to make good the pensions of former Ford employees who were given
assurances that their pensions would be protected. Instead their pensions had
been underfunded and Ford has a duty to make good the shortfall.
“Ford
needs to understand they cannot simply brush this matter under the carpet.
“It's
important that the voices of British MPs are broadcast across US air waves so
that Ford directors in the US understand their global brand reputation is being
tarnished by their treatment of former Ford employees in Britain and must make
good their duty of care by underwriting the pension shortfall they have
responsibility for.”
South
Basildon and East Thurrock MP, Stephen Metcalfe, Chairman of the APPG later
commented: “This is about Ford doing the right thing. As I said in the debate,
I have great respect for the company. It has a long and noble history in this
country – but even the best businesses can make mistakes. Ford, in this
instance has got it wrong and they must stand up and take responsibility for
their actions. I will continue to fight until justice is served for the Visteon
Pensioners.”
MPs
are hoping that following the debate, a select committee investigation will
take place. In the meantime, the APPG will continue its own enquiries into
Ford’s failings in the hope that the Visteon Pensioners will one day get the
pensions they are rightly entitled to.
