Workplace Report (June 2002)

Features: Pensions

Early retirement victory for privatised workers

A ruling earlier this month on redundancy and early retirement by the European Court of Justice is set to benefit workers in the NHS, local government and the civil service.

The case concerned Katia Beckmann who had worked for 13 years for the North West Regional Health Authority when she was transferred to a private firm of architects. Two years later she was made redundant. Despite being over 50, the company refused to pay her pension benefits, claiming that they were really "old age" benefits and those rights did not transfer with her. Public services UNISON successfully argued that she should receive the same benefits she would have received had she been employed by the NHS - that is immediate payment of an enhanced pension.

Dave Prentis, UNISON general secretary said: "This decision will help secure future pension rights of thousands of workers. Private contractors will have to think again about putting in rock bottom bids for services and then making workers redundant to cut costs and boost profits."


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