Europe to settle UK pension row

STEELWORKERS who lost out on pensions when their firm went bust have won a significant legal battle.

Former employees of Allied Steel & Wire have persuaded a High Court judge to refer their landmark case to the European Court of Justice.

They are suing the Government for failing to implement European Union rules designed to protect people in their position.

The company collapsed two years ago leaving a pension deficit of £140m.

A favourable European ruling could see 1,000 former ASW employees at Cardiff and Sheerness, Kent, claw back the majority of their pension entitlement.

The Government could find itself shelling out millions to other workers of bankrupt firms if a legal precedent is set.

'This is a great day for anyone who finds themselves in the insolvency trap and thought all hope was lost,' said Brian Gallagher of the Amicus union.