British Polythene, Europe's largest producer of polyethylene films, sacks and bags, has revealed that it is planning to cut pensions payouts to long-serving workers after it recorded disappointing results in the first half of 2006, according to a report on the Independent Online.
The company said that rising costs of raw material and lower demand in the UK were responsible for its 9% drop in profits for the first half of the year to GBP9.2 million.
According to the report in the Independent, the company is in talks with workers to cut payouts, although precise details are not known at this stage. However, the company will make a once only payment into its defined benefit pension scheme of GBP20 million.