Visteon Corporation said today that it had presented leaders of the UK union Unite with a solution to address redundancy pay concerns of former employees of Visteon UK, which was placed into administration on 31 March after years of losses.

Visteon said it would provide additional payments to the former employees, some of whom, just-auto understands, previously worked for the parts maker's former parent, Ford.

As part of the disbursement, the majority of employees would receive an immediate cash payment equivalent to 16 weeks of their previous pay, the supplier said.

Over time, additional payments would be made, increasing their total severance benefits to the approximate amounts they would have received under their most recent contract. Visteon said it would provide union representatives with written details of its position.

A statement said: "Visteon Corporation presented its position in the interest of assisting
the former employees, even though matters related to Visteon UK Ltd are now legally managed by the administrator, KPMG."

Visteon said that commitments made when Visteon UK Ltd was formed in 2000 [which was when some former Ford UK component-making employees transferred to the new company and were, they now allege, promised their wages, benefits, seniority and pension plans would be commensurate with their positions at Ford - ed] were met fully while the company was under Visteon management.

"Visteon Corporation noted that compensation matters, particularly terms and conditions including pensions, were discussed extensively over a period of approximately six years preceding the administration filing," the statement added.

"Despite these numerous attempts by the UK management team, it was not possible to reach agreement or terms enabling the UK business to be viable.

"Visteon Corporation operates in a highly competitive industry that is experiencing severe challenges. Over the past three years, Visteon has undertaken major global restructuring including the sale and closure of plants and implementation of production efficiencies, staff reductions, short work weeks, wage cuts and benefit reductions to meet its commitment to be a viable auto supplier," it added.

Visteon workers had been told of "lifetime protection"