Union officials are upbeat after talks with bosses over a pensions crisis at manufacturing firm Federal Mogul.

Talks were held yesterday between the Amicus union and other workers' groups and officials from the American-owned company.

Administrators Kroll, who are running the troubled firm, have come under fire since taking the decision last Thursday to freeze the pension pot of workers at the car parts manufacturer.

The scheme is reportedly facing a shortfall close to £875 million, with the firm in financial problems after a series of asbestos-related lawsuits.

It was feared that up to 40,000 current and former workers - including hundreds in Bradford who have lost or face losing their jobs at the company's piston making plant - could lose all or part of their pensions.

But today Dick Croft, the regional organiser for the Amicus union, said he was feeling a little happier after the talks.

He said that the major problem had been the lack of communication from the administrators but it was now hoped to hold further talks between all the parties later this week.

"There have been a whole series of negotiations going on in America in respect of the administrators and the creditors, but it seems that the company and the union have not been included until now," said Mr Croft.

"These actions have resulted in 2,500 people in the UK who are active members of the pension fund having to put their plans on hold. It seems that the human consequences have been ignored."

Mr Croft said that the huge media attention in the problems faced by the scheme, which would be the largest of its kind ever to be wound-up, had forced the parties involved to act.

"They are certainly more aware of the situation than they were a week ago when they were making the decisions that were made," he said.

"It is a pity we weren't talked to properly when the decisions were being taken.

"We still cannot promise anything, but we are more optimistic. We are trying to find a satisfactory solution but there is still a long way to go."

A spokesman for Federal Mogul stressed that the decision to remove the UK companies from the pension scheme had been made "unilaterally" by Kroll.

He added that a proposal by the firm to make an additional contribution to the pension scheme had been rejected by the appointed independent trustee.

Federal Mogul said it hoped to work alongside the unions involved to address the problems.

"Federal-Mogul firmly believes that its proposal to let the pension scheme continue is in the best interest of the pension scheme members," he said.

"The administrators have made it clear that the scheme is still open. It has not been terminated and it has not been wound up.

"Discussions between all parties who have an interest in the future of the scheme are continuing."

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