UK - Steel firm ASW could face legal action over its decision to wind-up both its £119m schemes amid claims that one was in a healthy state.
ASW went into receivership earlier this year blaming the strong pound and cheap imports for its plight. Its schemes were put into wind-up shortly afterwards.
But the trade union Amicus argues that while it was right to wind-up the pension scheme at the firm’s unprofitable Cardiff site, the scheme at ASW’s Sheerness facility in Kent was in a healthy state and should not have been wound-up.
A source at Amicus said: “They are separate schemes and our contention is that they [ASW] has not exercised proper care in looking at what the possibilities are.
“We should at least wait until we know what’s going on with any potential sale. But the firm jumped to wind it up, and at the worst possible time.”
The source claimed that legal action might be taken to contest the decision to wind-up the Kent scheme.
On Monday, hundreds of ASW workers and their families marched in protest over the lack of information regarding the health of the company and the scheme.
They marched on the Hilton Hotel in Cardiff where ASW’s receiver, KPMG, was holding a creditors’ meeting.
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