Tens of thousands of current and former UK employees of car parts company Federal Mogul have been warned that their pensions are under threat, according to the Daily Telegraph.
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Administrators have told Federal Mogul, a US business that was plunged into bankruptcy, that the pension fund of its UK arm should be wound up, the report said.
The Telegraph said the fund has a shortfall of £875 million, which means that future and current pensioners could see their benefits cut or frozen.
A spokesman for the UK’s Amicus union told the newspaper: “This is yet another example of how vulnerable British workers are. Their pensions are not protected.”
Federal Mogul, which bought Manchester car parts maker T&N in 1997, says it wants to keep paying into the fund as it attempts to emerge from bankruptcy, the Daily Telegraph added.
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