Arnotts staff seek talks on pension

ANXIOUS staff at Arnotts are seeking a meeting with the company over the management of their pensions in the wake of the move by banks to control the debt-ridden department store.

Workers in the company’s pension fund want answers over why long-term discretionary benefits in the scheme have suddenly been dropped.

More than 400 staff are involved in the fund and workers’ representatives have now sought a meeting with the pension fund trustees.

Mandate’s assistant general secretary, Linda Tanham, explained: “There seems to be a couple of long-term benefits that were discretionary that now are basically put on hold. We want to discuss the current state of the pension scheme and why it is necessary to stop additional benefits.”

Chairman of the trustees of the Arnotts Pension Fund Hugh Cooney will also be asked about what plans the company has to keep meeting pension demands, with the retailer now owing €300 million to banks.

Both state-owned Anglo Irish Bank and Ulster Bank were given the green light by Brussels last week to take control of Arnotts in a bid to restructure the retailer’s debts.

Workers have voiced concern about much-needed funds which were pumped into a planned €750m shopping and leisure expansion near the Henry Street iconic store, called the Northern Quarter, but which is now stalled.

Last year’s accounts for Arnotts show that it had a healthy surplus in its pension fund, so much so that trustees released nearly €60m equally between staff and the company itself the previous year.

Some staff have voiced concern that the pension funds released to the company were put down a “black hole” and invested in the nearby Northern Quarter property development.

However, staff who had been given pension perks based on their years of service or age recently have seen the company stop their bonuses.

There are also at least another 400 Arnotts retirees waiting for clarification over the pension fund.

Staff are also still waiting for information on what plans the Paladin Capital Group, consultants hired by Anglo to oversee the store’s finances, have to boost sales and the store’s future.