GKN workers in Telford could be facing up to a 50 per cent cut in their pensions as bosses consider a possible wave of redundancies across their European operations.

Unions today confirmed a management brief had been sent to staff, revealing long-serving workers could have their pensions slashed by half.

Industrial action has not been ruled out with union Unite calling for a national conference, which could see a ballot on possible strike action.

GKN at Hadley Castle employs about 950 people, with most shifts reduced or on short time after a drop in orders amid the global economic downturn.

Workers at factories in Erdington, Walsall and Hamstead are also affected. The company has 4,500 UK pension scheme members.

Eric McDonald, West Midland regional officer for Unite, said: “GKN is setting out its stall and we expect redundancies, but there has been no announcement as yet. There is no industrial action planned but people are angry and upset.”

Previously, a full pension was granted to workers over 55. Now it is understood bosses plan to discount the pension by 50 per cent if a worker made redundant is aged 55 or over.

GKN said today it had consulted fully with empl- oyee representatives and unions since December.

“Going forward, the usual practice will be that early retirement pensions will be provided on a cost neutral basis, in respect of all service, where the pension scheme rules allow.

“The company will review the position relating to discretionary early retirement practice at the end of 2009 and annually thereafter.”