EMI pension fund dispute escalates

EMI, one of the best-known music labels in the world, has not been able to come to an agreement with the trustees of the company's pension scheme and the situation has now been referred to the Pensions Regulator. The Pensions Regulator will now attempt to bring the two parties together to formulate an agreement which can be put in place over a ten-year period. The current deficit on the company's pension scheme is running at around £217 million although at this moment in time the company is struggling to retain its position in the music industry.

Guy Hands is the man behind EMI having taken over the company some years ago in a multibillion pound transaction. However, despite the fact that he has a track record in business which few others can match it seems that his style of management has not gone down well in the music industry. A number of well-known stars have left EMI over the last couple of years and the company is nowhere near as powerful as it once was.

If the two parties are unable to come to an agreement regarding the pension scheme then the regulator will be forced to draw up its own plan of action.