The House of Lords is hearing an appeal by unions on behalf of 60,000 part-time workers who have been denied rights to pensions.

The Unions have said that if the case goes their way they hope to get £95m worth of compensation.

Most part-time workers are women

They are asking judges in the House of Lords to endorse the right of part-timers to claim extra pensions dating back to 1976.

The action, brought by the public service union, Unison, is the consequence of a landmark European Court ruling giving part-timers equal pension rights with full time employees.

Most part-time workers are women and the European Court ruled in 1994 that denying them the right to join pension schemes was illegal and indirect sex discrimination.

The European Court ruled that part-timers should have equal rights with full time workers

The European Court of Justice has recently pronounced on other, related cases which has led the unions to believe that they might win their case this time.

In the past Council and teaching unions took cases to court but they were always thrown out for complicated reasons concerning time-limits for applications.

Unison pensions officer Glyn Jenkins said: " We see this as an injustice. It cannot be right to allow part-timers not to face decent pensions.

Glyn Jenkins: " an injustice"

"We believe that although it is a cost ... it is the last chance for many of these individuals to be able to contribute to get better pensions and escape the poverty trap," he said.

Several local authorities are opposing the unions' claims for backdated pensions. Their case is to be put by the Prime Ministers wife, Cherie Booth QC. She is likely to argue that under British law any pension claim must be made within six months of leaving the relevant employment. This would exclude the majority of former part-time workers.

If the local authorities lose, millions of pounds of compensation will be sought from local and central government, as well as some private bodies like banks. Other companies with a high proportion of part-time workers, such as retailers will also face claims if the unions win.
 

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