Pensions crisis at Rolls-Royce

Oct 03 2003 by Brian Amble Print This Article

Problems are mounting up for aero engineering firm Rolls-Royce.

Thousands of employees are threatening to strike over planned 'draconian' cuts in their company pensions. The company says that it needs to reduce employees' retirement benefits to plug a shortfall of more than £1.1bn shortfall in its pension fund.

In August, a survey of pensions by the actuaries Lane Clark & Peacock suggested that the Rolls-Royce shortfall was more than the company is worth on the stock market.

The situation at Rolls-Royce is so bad that the company has been described as "looking like a giant investment trusts which just happens to make a few engines on the side."