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Last Updated: Tuesday, 16 March, 2004, 17:52 GMT
Blair in pension crisis talks
ASW
A total of 800 workers were made redundant in 2002
Hundreds of ex-steelworkers are hoping a Welsh MP will be able to persuade the prime minister to reinstate their pensions.

Tony Blair agreed to talks on Monday with Cardiff West MP Kevin Brennan about the plight of 800 former Allied Steel and Wire (ASW) employees.

They lost their pensions after the firm went into liquidation in 2002.

It prompted the introduction of the Pensions Bill in February - but the workers fear they will not benefit.

Receivership

"I just hope that Kevin can persuade the prime minister and the government to see common sense and pay us what is rightfully ours - our pension and our pensions in full," said former ASW worker John Benson.

"It is what we were promised and it is what we should get."

The steelworkers were made redundant when ASW went into receivership in July 2002.

They lost 90% of the value of their occupational pensions - many after decades of paying into the fund.

It's an opportunity for me to put the case of the ASW workers to the prime minister
Kevin Brennan
The Pensions Bill - if passed - would set up a pension protection fund to help guarantee workers their pensions even if their employer goes bust.

But former ASW workers are unhappy that they will not benefit from the new legislation and are calling on ministers to make it retrospective.

Speaking before his meeting with Mr Blair on Monday, Mr Brennan said: "I've tabled an amendment to the pensions bill so the ASW workers can be compensated.

"Civil servants don't like retrospective legislation, neither do governments generally because it can open up a Pandora box of things from the past.

"But where you have a case like this it's important."

At the beginning of the month, Welsh Secretary Peter Hain said ministers were trying to find a way of compensating the ASW workers without having to compensate victims of financial scandals in a way that would cost hundreds of millions of pounds.

Mr Hain said what had happened to the ASW workers was outrageous, but the Government could not open up the taxpayer to a massive cost.

Some are viewing the meeting as a sign that ministers may be prepared to make concessions on the Pensions Bill to avoid a potentially damaging backbench revolt.




SEE ALSO:
ASW pension compensation talks
02 Mar 04  |  Wales
Bill 'no help' for ASW workers
12 Feb 04  |  Wales
MP leads pensions summit
04 Nov 03  |  Kent



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