Johnson & Johnson promised to look after their staff. That rings hollow for thousands of Lothians pensioners.

Former employees of the US pharmaceutical giant are taking their fight for "fairness" to parliament

Determined: David Taylor is campaigning for fairness

“We expected to be treated fairly in retirement. That trust has proved to be ill-founded” - pensions campaigner David Taylor on Johnson & Johnson

Retired employees of a company once renowned for its ethical and caring approach to its workforce in Edinburgh and the Lothians are reaching out to colleagues - after seeing the real value of their pensions eroded by up to 40% in recent years.

A legislative loophole dating back to 1995 means pension pots pre and post April 1997 are treated very differently, with the real buying power of many pre-1997 workplace pensions eaten away by inflation.

Ethicon and Surgikos, both owned by Johnson & Johnson, have employed thousands in this area over the decades, with Ethicon at Sighthill still employing 900 when it was closed in 2005. The businesses made surgical products, mainly sutures. Both businesses were viewed as exemplary employers, making high quality products through highly-skilled workforces.

One Ethicon pensioner told the Inquirer: “It was not unusual to find employees retiring after 30 or more years of service. During my 31 years I met a lot of people and, I can honestly say that very few of them lacked ethics or dedication to the company. It was that sort of place. We looked after the company because we felt that was reciprocated.”

That feeling has evaporated in the face of the devaluing of their pensions, with many feeling let down by a company of which they were once proud.

Hope remains

A legal loophole in the Pension Act 1995 meant employers were only required by law to increase post April 1997 pension pots in line with inflation, subject to caps. While many companies chose to treat pre 1997 pots equally, others – including Johnson & Johnson businesses like Ethicon – have decided not to do that. No pre-1997 increases have been made since 2014 – more than a decade ago.

Those who have been affected are hopeful that their cause will be taken up as the Pension Schemes Bill – now in its latter stages – makes its way through Parliament. It should reach the Report Stage in the House of Lords this week when it will be evaluated by the whole House. Labour MP Dame Nia Griffith has introduced an amendment, NC22, that would require employers to index-link pre 1997 pension pots in line with the rest but it is by no means certain to be adopted.