A CAMPAIGN group is fighting for pension rights for thousands of engineering workers in the region.

The Kvaerner Pension Fund Association (KPFA) now has 1,000 members, and is hoping thousands more in the North-East will join up to give it bigger campaigning power.

Concerns have been mounting about the future of engineering firm Kvaerner's UK pension fund after its loss-making UK operation, Kvaerner plc, was sold for just £1 in a management buyout last year, disconnecting the pension liabilities from the main firm, Kvaerner ASA.

Kvaerner UK, which has a £200m pension deficit, was sold only days before changes to new UK pension laws.

Members of the fund accused bosses of making a cynical manoeuvre to distance themselves from pension liabilities.

Although more than 1,500 workers contribute to the fund, there are about 30,000 pensioners and deferred pensioners reliant on it, and it is feared that without the financial resources of the Norwegian parent company Kvaerner ASA, the now independent UK arm will be unable to support the fund.

Kvaerner ASA has guaranteed the employer contributions to the Kvaerner Pension Fund at their current level until the end of this year.

But after that, pensioners are uncertain whether their pension will continue.

Kvaerner took over engineering group Trafalgar House in 1996 and has, in the past, owned other firms in the region including Darlington-based Cleveland Bridge.

Mike Street, of the KPFA, said: "We have spoken with the pension advisory service in London and we are very concerned. Things do not look good. But if we can get enough people to join our group then we will have more power to negotiate."

The association will act as a pressure group to provide a point of contact when dealing with the Trustees of the Kvaerner pension fund, the pensions regulator and MPs.

It issues a regular newsletter. For more information, visit www.kpfa.co.uk