Clwyd Pension Fund stops further investment in Oscar Mayer owner

Fund committee members agreed that no more money should be invested in Pemberton Asset Management, backing the Unite union’s claim that it was ethical for pensioners to benefit from profits made through pay caps.

Pemberton Asset Management owns 85% of ready meals manufacturer Oscar Mayer, which is currently embroiled in a dispute with 600 workers at its Wrexham site over an alleged redundancy and rehire scheme that will see a pay cut of up to £3,000 a year.

The Clwyd Pension Fund, which supports retired council officers and councilors from Wrexham, Flintshire and Denbighshire, has around 52,000 members and pays out more than £70 million in pensions annually. The funds will be partly managed by the Wales Pension Partnership (WPP), which has invested money in Pemberton.

As a result of this indirect investment, the Clwyd Pension Fund would benefit from an increase in profitability for Oscar Mayer due to its controversial plans. This prompted Unite to write to the pension fund committee on behalf of the Oscar Mayer workers.

“It cannot be right that the return Pemberton promises to the pension funds investing the retirement savings of local government staff in Wrexham is linked to a pay cut for other low-paid workers in their local authority,” they wrote.

The committee decided that there should be no future investment by the Clwyd Pension Fund in Pemberton Asset Management. It was also agreed to contact WPP to find out why the money was invested and whether it complies with WPP’s responsible investment policy.

“If every Oscar Mayer worker paid council tax, they would collectively pay around £150,000 into the Clwyd Pension Fund each year,” said committee member and Wrexham County Borough councilor Anthony Wedlake.

“This is very important to us. It is shameful that instead of improving company performance, they reduce workers’ wages.”

“I fully support this,” Flintshire councilor Billy Mullin added. “No further investment is a step in the right direction and I would like to thank you on behalf of my colleagues in the trade union movement.”