Labour Court endorses Fruitfield Foods Limited pension scheme proposal

The Labour Court endorsed Fruitfield Foods Limited’s proposal for a defined-contribution pension scheme for employees made permanent after the management buyout and future joiners. The recommendation was signed on 9 April 2003. Atwgu sought the existing defined-benefit terms for all workers, arguing that defined-contribution terms shifted risk to employees and that two schemes would divide the workforce. The company said it could not offer defined-benefit terms to new employees and cited its financial position. The Court said the proposed scheme was not out of line with pension schemes in new companies.