SENIOR OFFICIALS from the Taoiseach’s office, trade union Unite and the Irish Congress of Trade Unions (Ictu) are discussing the possibility of a national pension protection plan.
Such a scheme was one of the issues raised by the trade union movement during the social partnership talks which collapsed when the Ictu refused to accept that public servants should pay a pension levy.
It is understood that a senior official from Taoiseach Brian Cowen’s office, has held talks with figures from Unite and the Ictu, including its general secretary, David Begg.
The current talks are being held against the background of the bids by two US firms to buy Waterford Wedgwood out of receivership.
The luxury crystal and china group’s pension fund had a deficit of €111 million in October last year, about the same time that it began seeking new investors.
There are fears that staff who have contributed to the scheme will lose out should the pension plan become insolvent.
In this case, those that are already getting a pension from the scheme would continue to receive payment. However, current and former staff who have contributed, but who have yet to qualify for a pension, risk getting little or nothing.
This does not apply to workers in the group’s Wedgwood and Royal Doulton businesses in Britain, as the UK introduced a pension protection plan following a European court ruling.
Trade unions have argued that the Irish Government should do the same. Unite played a key role in getting the scheme on the table in the partnership talks as it became an issue when Waterford Wedgwood was placed in receivership early in January.
Two private equity firms, KPS Capital and Clarion Capital, are bidding to buy the group, which is reported to have a deficit in the region of €330 million.
KPS emerged as the front runner last week. Over the last few days, the New York-based fund has done deals to buy High Falls Brewery in Rochester, New York, and high-end US china manufacturer, Lennox.
The company specialises in buying and investing in manufacturing businesses, particularly those that are insolvent or which have heavy debt burdens. In the past it has invested in sectors such as heavy engineering, motor components and paper milling.
Clarion advised Waterford on the sale of its US kitchen-ware business, All Clad, in 2004. That company has invested in a diverse range of businesses, and is the current owner of Tennessee-based luxury luggage manufacturer, Hartmann.
Receiver David Carson of Deloitte has been in talks with both parties for several weeks. It is understood that a deal will save about 300 of the 700-plus jobs in Waterford Crystal. Workers there have been sitting in in its showroom since manufacturing was shut down at the Kilbarry plant over two weeks ago.
