Nissan Motor Manufacturing U.K., Sunderland, England, is considering freezing its U.K. defined benefit fund.
Following a valuation carried out in 2018, the "company's investment needed to maintain the defined benefit pension plan has grown to unsustainable levels," a Nissan spokesman said.
The carmaker is currently consulting with employees and trade unions on a proposal terms under which the U.K. plan would be frozen. "We aim to provide competitive benefits to our highly valued staff, but these have to be balanced with the long-term sustainability of our business," the spokesman said in an email.
"We are in discussions with affected employees and their representatives about the proposed closure of the plan," he added. The Nissan spokesman could not provide further details of the proposal.
"Nissan's plan to close the defined benefits pension scheme for hundreds of loyal workers is extremely disappointing," said Steve Bush, a national officer for the automotive sector, in a response posted on the union's website:
Mr. Bush said the union views the timing of the consultation "as an opportunistic attempt to push through long sought-after changes that will have a damaging impact on our members' plans and financial security in retirement."
According to Mr. Bush, under its proposal Nissan is not considering providing a lump-sum payment in return for the firm's workers accepting the decision to freeze the defined benefit fund.
The size of the plan could not be learned.