Bumper payoff for retiring union official

A union official at the centre of an election marred by ballot-rigging is to leave his job with a corporate-style £320,000 deal plus a car.

Charlie McKenzie, who was Labour loyalist Sir Ken Jackson's campaign manager in this year's bitter Amicus-AEEU leadership ballot, is to receive his full salary for the next five years.

The 60-year-old rightwinger, who is to retire early on November 29, two days before Sir Ken stands down, will be paid his £50,000 annual salary as if he were staying on until 65.

Under the terms of a package agreed with Sir Ken in January 1996, Mr McKenzie will also receive a £70,000 lump sum as well as driving away his union VW Passat.

When he reaches 65, the national secretary will be entitled to an enhanced pension worth an estimated £35,000.

Sir Ken, already 65, has indicated he will waive about half a £220,000 severance payment due under a 1995 agreement, and accept the £20,000 list price of a Vauxhall Omega, his old union car, instead of the £30,000 value of his current Jaguar.

But the outgoing general secretary is believed to have made another six-figure sum under an arrangement that union leaders to pocket the value of homes bought with union loans when they moved to London.

Mr McKenzie denies allegations made by a former colleague, due to be aired at an employment tribunal next month, that he was heavily involved in this year's ballot-rigging scam.

Mr McKenzie said the £50,000 a year until 65 included pension payments, and the package was in line with a deal for executive members. "I'm 60 years old, I've been an officer of the union for 25 years," he said.

"This package was agreed back in 1996. I could have left every year since that time but I stayed on. I'm getting nothing special."