Under a new pay and conditions deal, the US carmaker has bucked the trend of UK industry and decided to pay more into its employees' final salary pension scheme.

Here we have a major company deciding it wants to take a different view on pensions to other firms

Tony Woodley, TGWU

Many UK employers, including British Airways, BT and Marks & Spencer, have abandoned final salary schemes, preferring to switch to cheaper pension plans that transfer the risk of poor performance onto employees.

Ford, whose pay and conditions deals have traditionally been seen as a benchmark for UK manufacturing, has also enhanced maternity and paternity pay to employees.

And Ford workers will see their pay increase by a minimum 7% over two years.

The deal is worth 4% over the next year followed by an increase of 3% or the rate of inflation plus 0.5%, whichever is higher, in year two.

Making up shortfall

At a time when many UK workers are finding their benefits cut back, Ford has agreed to not only retain its final salary scheme for employees but enhance benefits paid out to members.

And Ford will increase the amount of money it pays into its employer pension scheme.

Peugeot has been accused of adding "insult to injury"

Ford's move should make up for any shortfall in the fund stemming from falls on the stock market.

Tony Woodley, deputy general secretary of the Transport & General Workers' Union welcomed the company's move to improve pensions:

"Here we have a major company deciding it wants to take a different view on pensions to other firms."

Mr Woodley told the BBC that Ford was not being generous, only acting responsibly towards its workforce.

He said the deal "sets the benchmark for British manufacturing on pensions".

Best pension

Ford's decision to improve its pension scheme is at odds with the approach taken by much of UK business.

Final salary schemes have traditionally been seen as the best type of pension a worker can get.

They guarantee to pay a retirement income based on a percentage of the contributor's salary, every year for the rest of their life.

The amount achieved depends on length of service and salary at the time of giving up work - the final salary.

However, final salary schemes can be expensive to run and many high profile companies have closed their pension schemes.

On 15 November, Mr Woodley criticised Peugeot UK for asking its employees to increase their contributions into the company pension scheme, in spite of years of employer pension holidays.

Mr Woodley described Peugeots approach as "adding insult to injury".

Baby boon

Ford workers with children will also benefit under the new deal.

The company was already paying 40 weeks maternity pay, well above the statutory level, but this will now be increased to 52 weeks.

Mr Woodley told the BBC that the deal ensured Ford workers would enjoy a better work-life balance.

The deal covers workers at Ford plants across the country including those at Southampton, Dagenham and Bridgend.

Workers are now to be consulted on the offer but the union is backing the deal.