Fujitsu UK & Ireland has confirmed that it has received a special payment of £800m from Fujitsu Limited (Japan), which it has invested into three of its UK defined-benefit pension schemes. The company has taken this step to substantially improve the financial position in these pension schemes. The company has negotiated reduced ongoing annual contributions with the pension scheme Trustees that will enable its UK businesses to accelerate investment over the coming years. This action underlines the company’s responsible approach to invest in the UK economy and to honour its commitments to current and former employees.
Duncan Tait, CEO of Fujitsu UK & Ireland, said: “We have supported UK business across both public and private sectors for more than 40 years and this announcement underlines our commitment to continue doing so far into the future.”
“Fujitsu already plays a major role in supporting the UK economy; our 2012 investment in the UK was close to £50m, including more than £14m spent on R&D. Our total investment is more than £3bn. This move only strengthens our ability to contribute to economic growth on these shores.”
The £800m special investment underpins a series of on-going contributions made by the business to the UK and Ireland:
- Fujitsu is the UK’s biggest Japanese employer with 14,000 staff, many based in areas of typically low employment. Over the past year alone, the company has recruited over 1,800 people, almost a third of which were workers under the age of 25 – a level of job creation it intends to maintain
- The company’s UK supply chain generates around £215m in revenues for small and medium-sized enterprises
- Since 2008, Fujitsu UK & Ireland has invested some £36m in capital projects
Fujitsu UK & Ireland itself is enjoying rapid expansion, with a headcount growth of 3.6% during 2012 (compared to a 0.9% growth rate for the wider UK labour market).
Split across three pension schemes, the £800m investment will substantially improve the funding position of these schemes, benefiting over 21,000 members.
John Cridland, CBI Director General, commented: “Fujitsu’s decision today highlights the company’s commitment to honouring the pension promise made to employees. Like many businesses, they are working hard to grow as well as fund pensions. Last week’s Budget announcement of a new duty on the Pensions Regulator to support the growth of firms who are standing by their scheme will be good news for every business with a DB scheme.”
Concluding, Duncan Tait said: “The ability to safeguard the long-term future of our most valuable asset, our employees, has been one of the defining factors in making the UK & Ireland a competitive place to do business. I am delighted that we are able to demonstrate our on-going commitment to employees young and old at both a local and international level. In addition to this, the move has created space for the UK & Ireland business to invest over the coming years and to continue to drive growth within the UK.”