GKN – BEIS Committee publish Melrose letters on pensions and undertakings

The BEIS Committee have today published letters from Simon Peckham, Chief Executive, Melrose Industries on undertakings and intentions in relation to GKN post-acquisition, and in relation to the pensions scheme and voluntary clearance process.

Rachel Reeves MP, Chair of the Business, Energy and Industrial Strategy (BEIS) Committee said: “Melrose have given a sense of the likely direction of their post-offer undertakings but there is a still a lack of detail in their commitments on investment and jobs and these currently fall short of being legally enforceable. GKN is an iconic company, of UK and global importance, and it is incumbent on Melrose to set out more clearly what their takeover means for R&D, jobs, and pensions. Workers at GKN deserve more detail from both Melrose and the management team at GKN about what future lies in store for their jobs and for long-term investment in the UK operations of the company”.

On 6^th March, the Business, Energy and Industrial Strategy (BEIS) Committee held an evidence session on the proposed takeover of GKN by Melrose with witnesses from GKN, Melrose Industries, and Unite the union.

Following the hearing, Rachel Reeves MP, Chair of the Business, Energy and Industrial Strategy (BEIS) Committee wrote to Melrose calling for them to outline their plans for the GKN pension scheme and on post-offer undertakings regarding the future of the business.