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Thursday, 8 September 2011

Public sector pensions: More unions warn of action

June 30 public sector protest The changes prompted a strike and a march in London on 30 June
Two more unions have warned the government they will take industrial action if it goes ahead with plans to increase pension contributions.
Prospect and the FDA, who represent professional and senior staff, say they could take action in November.
The move comes ahead of the latest meeting between the government and union leaders over pension reform.
The government wants civil service staff to pay £1.1bn in extra contributions from April.
Chancellor George Osborne has said the proposals are a good deal because staff are "going to get one of the best pensions you can get in our country, but it is also fair to taxpayers".
The coalition also said pension contributions needed to rise as life expectancy continues to increase.
October deadline The changes prompted a one day strike by the PCS union and a number of teaching unions on 30 June.
BBC industry correspondent John Moylan said: "In theory, over the summer talks should have been progressing on the various public sector pension schemes targeted for reform.
"In practice, it's understood very little progress has been made so there's much to be done by the government's deadline of the end of October."
The government wanted agreements by then on rises in employee contributions and on what the redesigned public sector pensions will ultimately look like, he said.
Our correspondent added that the public sector unions believed that timetable was impossible - and were warning that any imposition of higher contributions next year while public sector workers still face a pay freeze would inevitably result in industrial action.
He said another day of action, probably in November and involving more unions, was being discussed in union circles; however, a decision has not yet been made.
Prospect and the FDA represent some 54,000 senior and professional civil service staff.
NHS workers, teachers and civil servants will have to pay extra money into their pensions as the government looks to shave £1.2bn off its pension bill next year.
Similar plans are in the offing for firefighters and the police, and possibly for local government staff as well.
The initial proposals affect 2.5 million people at first: NHS workers and teachers in England and Wales, and civil servants in England, Scotland and Wales.



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