UK - Trade unionists will go ahead with plans to sue the government over compensation for Allied Steel & Wire scheme members.
The Community union, formerly the ISTC, will present its case before the High Court between November 9-11 in order to set a date for a hearing in the European Court of Justice.
The case aims to prove the government failed to implement the 1983 European Insolvency Directive which required member states to protect workers’ pension benefits.
The union put the case on hold after the government unveiled its Financial Assistance Scheme in May.
However, they believe there is still a strong case because the offer is far too low to compensate even 30% of the pensions owed to an estimated 65,000 workers who have lost up to 90% of their benefits.
If successful, the case could cost the government between £1.5bn and £2.5bn. It would also open the floodgates to similar claims that could cost in the region of £4bn.
Community general secretary Michael Leahy said: “We have been advised by senior counsel that we have a strong case.”
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