A dispute with XPO Logistics over missing employee pension contributions could be brought closer to resolution following legal action being taken in the French courts, according to union Unite.

The legal move is being used to pressure the logistics giant, which has its headquarters in France, to stamp out human rights abuses in its supply chain. It has been brought by an alliance of European unions including Unite and is the first time such action has been brought against a global transport company.

In a statement issued this week the union said it “believes that a successful legal action in France will add pressure to help resolve its dispute affecting some of its nearly 3,000 UK members who are not being credited with the right contributions to their pension pots".

Unite national officer for road transport and logistics, Matt Draper, added: “We hope that the UK issues will be resolved in the coming weeks, but the French case adds to the pressure on XPO management that its employment practices are under the legal spotlight.

Read more

Draper added: “We hope this move in France is successful, and it will improve transparency in its supply chains and engagement with the unions.

“Our members are sick of the continuing problems about their pay and pension payments not being calculated correctly – this is despite past promises from the bosses that these issues are being resolved.

According to the union, members have seen pension deductions from their pay packets, but have not seen anything credited to their pension pots.

The problems first came to light when the company switched payroll provider last year. At its annual general meeting earlier this year the company said it was working with anyone affected to stop the error reoccurring.

The US based “logistical giant” has roughly 100,000 employees across 32 countries, with nearly 3,000 based in the UK.