Hundreds of workers at Bord na Mona may face retirement without a pension, it emerged tonight. Unions maintain the firm is set to use its pension fund to cover payment for former employees while current staff - some with 40 years service - will be left with nothing.
Unite and Siptu said employees at the state-owned peat company are angry and astonished and called on the government to reverse the decision.
Unite’s Dermot Mahon said management’s move to renege on its defined pension benefit scheme will leave the 240 workers in the scheme, some who have been at the site for four decades, without a cent.
“This is effectively the government defaulting on the pension scheme,” said Mr Mahon at a trade union meeting in Newbridge.
“It is a decision which our members cannot and will not accept.” Bord na Mona said the severe downturn in investment markets has left at least 90 per cent of National Pension Funds in deficit, including the peat firm.
“An ongoing and comprehensive series of discussions have taken place to consider the challenges and potential solutions facing these pension schemes,” said a spokesman.
“However, given the recent collapse of investment markets and the resulting liability increase, a significantly negative impact on the funding situation in Bord na Mona has arisen.
“The company is continuing discussions with representatives of the pension schemes and remains optimistic that an appropriate joint solution can be found.”
Mr Mahon said the company expects to make 30 million euro in profit this year and is planning to invest €50 million in technology and development over the next five years, adding it is incredible they can wash their hands of a pension obligation built up over decades.
“For a privately owned company to act in this way would be reprehensible,” continued Mr Mahon.
“For a company which is 95 per cent in the ownership of a government that is seeking to apply a pension levy on workers is beyond belief.” Unions will meet with management again next week.
PA