Fujitsu has announced plans to pump £800m into its British business. The Japanese tech giant was last seen dropping out of the race for £530m in taxpayers' cash to install broadband in Blighty's countryside. The Financial Times reported this morning that the company had decided to invest in the UK wing of the corporation, which …
How on earth are 2 completely separate actions by Fujitsu worthy mention in the same breath?
And since when can rebalancing an underperforming pension pot be classed as "investment". Most of their emplyoyee's would see it as an obligation.
If Fujitsu's pension situation is anything like the scheme in which I'm a "deferrred pensioner" then most of the money they are having to pump in now is due to the collapse in returns from the long term bonds that pension funds tend to invest in which is a direct result of the QE policy of the BofE
Sort of disconnected...
The two actions are only sort of disconnected.
Global Fujitsu are putting a few quid into the Fujutsu UK pension pot (the defined benefit one) to pay off some of the rather large deficit. In return for this, Fujitsu UK get to pay smaller pension contributions in future, thereby freeing up money to invest in the business (or pay the seniors and shareholders). The defined benefit scheme is presumably closed to the current workforce.
I don't know about Fujitsu specifically, but many corporate pension scheme deficits originated long before the current QE saver-robbing bankster-saving schemes; they originated in the 1990s when many corporates, encouraged by the CBI, decided to have a "pension holiday" and rather than putting money into the pension fund, the company put it into the bottom line instead. Great for the short term. Not so good for the workforce.
The chap in charge at the CBI at the time was a bloke called Adair Turner. More recently, Baron Turner has been chair of the Pensions Commission. Currently he is boss man at the Financial Services Authority, allegedly regulating (among other things) the parasites in the pension industry.
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