HAMPSHIRE MPs have vowed to continue fighting to claw back the pensions owed to hundreds of workers at US-owned APW Electronics.

Pensions minister Malcolm Wicks confirmed members of the collapsed pension fund would not be covered by the government's £400m Financial Assistance Scheme (FAS). Some 380 companies have qualified for funds to shore-up collapsed schemes.

But APW Electronics is not eligible because the company is not insolvent. Hundreds of workers are losing lose four-fifths of their pensions because the scheme, which has a £55m shortfall, was wound up in the High Court. The move was to keep the company - employing 285 people at Chandler's Ford - solvent. David Chidgey, Eastleigh's LibDem MP said: "We are going to keep on fighting."

John Denham, Labour MP for Southampton Itchen, said: "The minister said about 200 companies have not qualified for the FAS. If we all get together, that is a pretty strong lobby group."

MPs highlighted how constituents were suffering because of the "unethical" behaviour by APW's parent company.

It declined in November to contribute £15m over the next ten years to prop-up the ailing scheme. The global company's president, Wisconsin-based David Gallitano has refused to comment.

Mr Denham described how one man retired seven days after the pension scheme was wound up - and saw his predicted annual pay-out slump from about £9,400 to just £1,848. Mr Wicks, in a Parliamentary written statement, said taxpayers could not be expected to shore up the pension obligations of companies which were still trading and could record a profit.

The government pledged to pay 80 per cent of the losses suffered by staff at the 380 firms whose company schemes went bust.

However, as already reported in the Daily Echo, workers whose private pensions have collapsed in the scandal will be allowed a state pension.

But it is likely that only the lowest paid, longest serving workers will benefit under this scheme.