UK - Tractor giant Agco has won its battle to cut pensions for workers made compulsorily redundant should they decide to take their benefits early.
The Appeal Court ruling dashes the hopes of thousands of workers at the former Massey Ferguson plant in Coventry which was closed after the firm was taken over by Agco.
The international tractor giant wants to reduce pension entitlements by 60% if former workers choose to draw their benefits earlier than the firm’s official retirement age of 65.
The Appeal Court decision – which overturned a High Court ruling in December – is expected to save Agco around £40m.
The Transport & General Workers’ Union said it found the decision difficult to swallow.
T&G national organiser for manufacturing Peter Booth said: “It is difficult to see how the Appeal Court has overturned the ruling in the High Court when they essentially had the same evidence.
“This is an astonishing ruling which appears to go against the spirit and letter of the pension fund rules. It is a poor decision for our members and one that we cannot understand.”
An application by the TGWU and staff for leave to appeal to the House of Lords was rejected.
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