Prescott: Pensions U-turn

Unions have confirmed they are calling off a major public sector strike prompted by a dispute over pensions.

Following a series of government concessions last Friday, key public sector unions announced Wednesday's strike of some 1.5 million local government workers will no longer go ahead.

Leaders of Unison, Amicus, UCATT, the Transport and General Workers' Union and the GMB had been meeting their executives over the weekend.

The move follows government commitments to re-start talks and revoke changes to the local government pension scheme.

Ministers admitted their plans were surrounded by "misunderstandings and suspicion".

Commenting on the development, pensions minister Alan Johnson said: "I think we need to take the time to get this right."

Strike threat

The trade unions were threatening industrial action should negotiations fail to avert the proposed raising of the retirement and pension age.

"The strike is off but I have no doubt that had it gone ahead on Wednesday we would
have seen a massive show of strength and solidarity across public services," TUC general secretary Brendan Barber said.

"However, I am pleased that the government has listened.

"Our aim throughout talks with the deputy prime minister has been to have these regulations revoked and to have real negotiations on how we can have a viable, sustainable pension scheme that will benefit all."

Stakeholders

Prescott is now planning to introduce a new negotiating body to deal with the long term future of the scheme.

The body will be a tripartite committee in which "key stakeholders" will negotiate the scheme's long term future.

"With an issue of so much importance to so many people, it helps no one that there have been misunderstandings and suspicions of these reforms," Prescott said last Friday after three weeks of intense negotiations with the unions.

"Rather than rush and risk getting the policy wrong, we want to ensure we get it right and carry the people affected with us.

"What we all want is an affordable long-term settlement which is fair to current and future generations."