Strikes loom as anger over pension reforms reaches fever pitch December 2011
Posted date: 1 December 2011
Concessions to public sector pension reforms have done little to prevent the industrial action which seems likely to go ahead on 30 November.
At the time of going to press several unions, representing workers from senior civil servants to cleaners, had declared that they would be proceeding with the planned strikes.
Francis Maude, Cabinet Office Minister, has tried to limit the impact of the move by suggesting that workers take “token action”. By only stopping work for 15 minutes, they avoid the loss of a day’s pay. The notion was put forward while talks between the Government and unions over the pension changes were ongoing.
In an effort to prevent the walkouts, the Coalition had proposed amended reforms. However, these were too late for the ballot.
The new offer provides pensions that are as good, if not better, for many workers. However, the Government admitted that individuals would have to work longer and contribute more to their schemes.
Other provisions include an accrual rate of eight per cent and reassurance that anyone within 10 years of retirement on 1 April 2012 will be protected. As a result, they will see no change in their retirement age and no decrease in their pension.
It highlighted that in order for a worker to gain similar pension benefits in the private sector, an employee would have to contribute a third of their salary.
John Cridland, CBI Director-General, said: “These proposals offer additional protection for public sector workers, particularly to the low-paid, while still achieving the essential reform which taxpayers need.”
John Hanratty, Head of Public Sector Pensions at Pinsent Masons, insists that the issue is one that will affect all of us, whether as a public servant needing reassurance about their future or as taxpayers.
The impact of public sector walkouts is likely to be felt nationwide and will cause major disruption. Speaking to the BBC, Maude warned unions that a whole day of strikes would put more pressure on demands to change the law with regards to minimum turnouts at ballots and would become “very, very hard to resist”.
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