Westminster Scotland Wales London Northern Ireland European Union Local
ePolitix.com

 
[ Advanced Search ]

Login | Contact | Terms | Accessibility

Unions vent anger over pension plans
Union protest sign

Trade unions have staged nationwide protests against the changes ministers are planning to make to the pensions of public sector workers.

The protests will be an unwelcome distraction for Labour, coming amid a tough general election campaign where the party is already concerned about a lack of grassroots support.

Senior union figures have expressed their frustration with the plans being put forward the government.

And thousands of people were expected to attend protests in towns and cities across the country.

Events were held in cities including London, Newcastle, Leeds, Edinburgh, Glasgow, Aberdeen, Swansea and Cardiff.

Ministers have provoked the anger by putting forward plans to overhaul the local government, civil service and NHS pension schemes.

While there are differing proposals for each, a key theme has been to raise the retirement age and shift from final salary pensions to schemes based on career average earnings.

The move is being driven by the need to bring down the government's pensions liability which, it has emerged, now outstrips the national debt.

Actuarial consultants Watson Wyatt, estimate that outstanding pensions payments total £690 billion, it was widely reported on Friday.

But unions are also claiming there has been insufficient consultation and negotiation on the changes.

As a result, some unions are already preparing to hold strike ballots on the plans, with industrial action a distinct possibility.

Pay cut

TUC general secretary Brendan Barber said that cuts in pension provision "are the same as a pay cut".

"The government's attempt to raise retirement ages across the seven million who work in the public sector must add up to the biggest ever pensions change," he said.

"Pay is often lower in the public sector than in comparable private jobs, and stress levels higher.

"A reasonable pension has always helped make up for this. Cutting back pension provision will hit morale and staff retention.

"We believe there are alternative ways of achieving government objectives.

"Some talks about some schemes have begun, but there needs to be a much more serious engagement to negotiate a fair public pension deal."

Around the UK

Scottish unions were also pledging to take action in a bid to show their anger at the proposals.

STUC general secretary Bill Speirs said they would result in longer working lives "for already hard pressed public sector workers".

"Proper pensions are an integral part of public service contracts of employment," he added.

"This is why workers often seek employment in public service rather than more lucrative opportunities in the private sector.

"Ill health means that the average Scottish public service worker will already have a shorter retirement than other parts of the UK. These proposals will make the situation worse."

In Wales, Plaid Cymru said it was backing the union campaign and warned that the proposals could make pensioner poverty worse.

"Low paid workers again will be hit the worst," added MP Adam Price.

"Many cannot afford to contribute to the current scheme, and many more will be in the same position following the implementation of these proposals."

Published: Fri, 18 Feb 2005 00:01:00 GMT+00

"Cutting back pension provision will hit morale and staff retention. We believe there are alternative ways of achieving government objectives"
TUC general secretary Brendan Barber