25 March 2005
Work and Pensions Secretary Alan Johnson will chair a pensions summit next week, beginning the fresh negotiations over retirement plans promised to public sector unions following this week's cancelled strikes.
But senior unionists have already warned ministers they must consider withdrawing plans to raise the pension age in the sector from 60 to 65 if this week's fragile truce is to last.
Johnson has invited union leaders to begin talks on March 31. Cabinet Office minister David Miliband and senior civil servants are also likely to attend.
Following a meeting of public services unions on March 23, Trades Union Congress general secretary Brendan Barber said he welcomed 'the opportunity to put members' views to ministers' and heralded Johnson's assurance that 'all aspects of the government's proposals will be open to discussion'.
Privately, however, some unionists said that they were sceptical that plans to increase the pension age will be up for negotiation.
Just two weeks ago, Johnson stressed that 'there was no strong argument' for retaining a retirement age of 60. The government insists that current pension liabilities are unsustainable and must be reined in.
A senior union source told Public Finance that failure to discuss the pension age could 'make Johnson's latest offer of sustained and genuine negotiations a very short-lived proposal'.
Some unionists are sceptical about the government's sudden climbdown over its reform plans and believe ministers have only entered into discussions to prevent strikes before the forthcoming election. They fear that departments could continue with their intended reforms after polling day.
A national strike over pensions planned for March 23 was cancelled this week after Johnson, backed by Prime Minister Tony
Blair, wrote to Barber promising the 'fresh start'. 'I think we need to take time to get this right. The prime minister agrees,' Johnson's letter states.
Deputy Prime Minister John Prescott immediately revoked changes to the Local Government Pension Scheme due to come into force in April, and three town hall unions – Unison, the GMB and T&G – and education and civil service unions halted strike plans.
PFmar2005
