Union representatives are reassured about the future of MG Rover in Birmingham, following a meeting with management, the BBC said on its website.
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The meeting was held on Thursday evening after reports that a multi-million pound trust fund had been set up for directors, the BBC said.
Union officials reportedly also had concerns about the company pension scheme and questions about the financial restructuring of the loss-making car firm.
Dave Osborne, from the Transport and General Workers’ Union (T&G) with responsibility for the car industry, told the BBC the company had categorically denied allegations of “asset stripping”.
Duncan Simpson from the Amicus union told the BBC he was happier about the future of the company as a result of Thursday’s meeting.
The report said officials from the T&G and Amicus met John Towers, chairman of Phoenix Venture Holdings, which owns the Birmingham-based company, and Osborne said the purpose of the meeting was to obtain from the company an explanation of directors’ payments including salaries, pensions and loans.
“The company categorically denied allegations of asset stripping and said that current speculation was wholly unfounded,” Osborne told the BBC.
The T&G Workers’ Union said its next step would be to bring in independent accountants to look at the company’s finances, the BBC report added.
