MP turns up heat over Heineken pensions deal

By Nathalie Thomas
Published on Monday 30 January 2012 00:00

Politicians have increased the pressure on Dutch brewer Heineken following allegations that it broke a pledge to pensioners of Scottish & Newcastle (S&N) in the wake of its takeover of the Edinburgh-based com–pany in 2008.

Mike Crockart, MP for Edinburgh West, has tabled an early day motion calling for Heineken to justify its position amid claims that the Dutch giant reneged on a commitment to continue the practice of providing inflation-linked pension increases.

The company failed to make an inflation-linked payment in 2010 when the cost of living exceeded 4 per cent, causing an uproar among tens of thousands of S&N pensioners who claimed they received a “raw deal”.

Heineken denies it has broken any pledges, arguing that payments have been explicitly “discretionary” and that the decision taken in 2010 was based on the outlook for the pension fund at the time.

By contrast, campaign organisation S&N Pensions Group claims: “The public undertaking given by Heineken at the time of the S&N acquisition was unequivocal and clear.”

In the motion, Crockart also calls on the UK government to take stronger steps to protect British pensioners in situations where their employer is bought by a foreign company.

The pensions ombudsman is to investigate the allegations.

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