PROGRESS has been made in the pensions "crisis" at defence giant BAE Systems, but there was still some way to go before a deal was agreed, union leaders said today.

Jack Dromey, national organiser of the Transport and General Workers Union, said the company had backed down over its threat to the final salary pension scheme and had agreed to bear the brunt of plugging a huge £2.3bn "hole".

Unions had also won a guarantee that any future pension surpluses will go to workers, said Mr Dromey.