Unite fears ‘lynch mob’ mentality to public sector pensions
2 August 2010
Unite, the largest union in the country, fears the government,
media, pension industry ‘experts’ and private sector employers are
acting ‘like a lynch mob’ in demanding reductions in public sector
pensions.
Unite, which represents more than 250,000 public sector workers,
believes this coalition of vested interests has already decided
that public sector pensions should be reduced, and has created a
climate of hysteria designed to manipulate the facts to make the
case for this.
In its evidence submitted to the Hutton commission of public
sector pensions, the union argued that:
- Government is uniquely placed to provide pensions for its
employees at a much lower cost than is possible for private sector
employers
- Public sector pensions are being funded in a controlled and
responsible manner.
- The agreed ‘cap and share’ framework provides a basis that will
ensure that scheme costs are sustainable in the face of rising
cost.
- The imposition of a change in indexation to the Consumer Price
Index (CPI), which can be construed as pre-judging the commission’s
findings, is in breach of understandings surrounding cost-sharing,
as also would be the imposition of any across-the-board
contribution increase.
- Public sector pensions are proportional to pay and earned by
service and so higher pensions reflect not gold-plating but a just
reward for a long career in public service.
The commission, headed by former Labour cabinet minister John
Hutton, is due to make an interim report in September, with the
review’s full proposals by the time of the 2011 budget.
Unite joint general secretary, Derek Simpson, said: ”We are
pleased to be able to present a defence of public sector pension
provision, which Unite is doing against a lynch mob mentality by a
coalition of vested interests – government, the media, so-called
‘experts and private sector employers – wishing to reduce public
sector pensions.
”There is a climate of hysteria being generated, with facts
being manipulated to fit a pre-judged case. This unholy alliance,
embracing CBI leaders and Nick Clegg, already have good pension
nest eggs, which the average private and public sector employees
can only dream about.
”Last year, the TUC said that the majority of public sector
pensioners received a pension of less than £5,000 a year and that
half the women on NHS pensions receive less than £3,500 annually.
We are not talking about great riches here.
”This review will potentially affect the livelihoods of many
millions of past and present public service employees and their
views as members need to be properly considered, alongside those of
taxpayers’ in general. It is unfortunate that in relation to
pension debates that members’ interests are very rarely given due
consideration.
”The first stage of the commission’s work has been described as
‘interim’, but it is clear from the terms of reference that, in
fact, the first report will be required to make a final judgement
on whether there is a case for change. Otherwise, it could not
begin to make recommendations for the short term savings the
government is clearly keen to realise.
”Unite questions the independence of this commission and whether
it can resist the forceful lobby wishing to drastically erode the
modest pensions of millions of public sector workers.”
ENDS
Notes for news editors
For further information, please ring Shaun Noble, Unite
communications officer, on 07768 693 940.
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