Union experts to scrutinise MG Rover finances

British trade union experts are to examine the finances of car giant MG Rover following top level talks to discuss concerns over executive pay and pensions, it was announced today.

Officials from the British Transport and General Workers Union and Amicus met last night with John Towers, chairman of Phoenix Venture Holdings which owns the car company, and other board members.

The talks followed union concerns over executive pay at the company, said to be the highest in the car industry, a pensions deficit of over £70m (€99.6m) and reports that a trust fund has been set up for company directors.

The unions said in a statement today that the purpose of the meeting had been to obtain an explanation of directors’ pay, including salaries, pensions and loans.

“The trade union side raised with the company issues relating to the financial structuring of the business.

“The company categorically denied allegations of asset-stripping and said that current speculation was unfounded.

“The company said the information provided to the unions had been given to the media and they were prepared to give detailed explanations to any appropriate party.

“The national officials indicated their intention to take up this offer with the involvement of trade union financial experts.”

The unions called for the meeting following reports that a £13m (€18.5m) trust fund had been set up for executives of the loss-making car firm.

Mr Towers masterminded the purchase of Rover from German car firm BMW which safeguarded thousands of jobs at Longbridge in Birmingham.