A group of one thousand steelworkers discovered that they had lost their pensions over two decades ago. To this day, many of them have still not received the money they are owed, and tragically, some have passed away. The steelworkers, who were employed at Allied Steel and Wire (ASW) in Cardiff, were informed that they had lost their jobs due to the company going bankrupt. The devastating news continued when they were informed that there was a £21 million deficit in the pension scheme, leading to an 85% reduction in their expected pensions. Despite monthly contributions, nearly a thousand workers found themselves without jobs or the pensions they had worked hard for.
In 2007, the Financial Assistance Scheme (FAS) was established to aid individuals who had lost their pensions. However, the FAS agreed to pay only 90% of what the workers were owed at the time. Furthermore, they did not agree to provide inflation-linked increases above 2.5% after 1997 or any inflation-linked increases for time worked before 1997. This decision had a significant impact, as the ASW indexation rate stood at 5% at the time of the company’s collapse. Consequently, the former steelworkers were only set to receive a portion of the funds they were entitled to, leaving many feeling shortchanged.
John Benson, a dedicated campaigner who has been leading the charge for over two decades, spoke out about the injustice they have faced. Benson highlighted that his pension currently stands at £13,750 annually, significantly lower than the expected amount. He emphasised that he is owed over £200,000, as his pension would have been £26,500 annually if ASW had continued operations. Despite the challenges and disappointments, Benson remains resolute in his fight for justice, determined not just for himself but for his departed colleagues who never received the pensions they deserved.
The steelworkers have come together to petition for a change in pension compensation legislation, aiming to rectify what they perceive as an ongoing miscarriage of justice. Their plea calls for an increase in compensation to 100% of the accrued pension, with inflation adjustments to match the actual inflation rate. Additionally, they advocate for full restoration of pensions with pre/post 1997 indexation and retroactive measures. To bring attention to their cause, the petition requires 10,000 signatures to be debated in Westminster.
Responding to the situation, a representative from the Department for Work and Pensions acknowledged the concerns surrounding indexation of pre-1997 accruals, including those from the Allied Steel and Wire pension scheme. They assured that they are reviewing the recommendations from the Work and Pensions Select Committee report on defined benefit pension schemes and will provide a response in the near future. The campaigners persist in their fight for fair compensation, unwavering in their determination to secure what is rightfully theirs.
As the battle continues, it serves as a poignant reminder of the resilience and unity displayed by the former ASW steelworkers. Despite the passage of time, their commitment to seeking redress for the injustices they have endured remains unwavering. The voices of those who have passed away echo in their mission, spurring them on in their pursuit of justice. Through their steadfast efforts and unwavering resolve, they strive to bring about a change that will honour the legacy of their fallen comrades and secure a brighter future for all affected parties.