Pension protests will cost economy £500m, say ministers

24 Nov 11
The government has today warned that the public sector unions’ walkout over pension changes could cost the economy £500m.

By Richard Johnstone | 24 November 2011

The government has today warned that the public sector unions’ walkout over pension changes could cost the economy £500m.

Speaking ahead of the strike planned for November 30, which could involve 3 million workers, Cabinet Office minister Francis Maude said the lost output would cost jobs.

However, the Trades Union Congress, which is organising the action, dismissed the claim as ‘fantasy economics’.

As many as 28 unions could take part in the walkout over the proposed pension changes, which include increases in staff contributions and the retirement age.

TUC general secretary Brendan Barber said that the government was now trying to ‘scapegoat’ public sector workers for the UK’s economic problems.

He added: ‘Dedicated public sector workers take no pleasure in taking action next week but the blame for this strike lies squarely with the government for failing to engage in serious talks until unions decided on a day of action.’

A spokesman for the Public and Commercial Services union told Public Finance that any hit to the economy would be ‘a drop in the ocean’ compared to the combined impact of pension changes and the public sector pay freeze.

Also today, the UK Border Agency has confirmed that civil servants across Whitehall could cover for striking immigration staff on November 30.

A spokesman for UKBA said that as part of ‘full contingency plans’ being put in place, other government workers have been asked if they could be trained to reduce the impact of the industrial action.

He added: ‘The security of the UK border remains our top priority and we are exploring all options to ensure we minimise any disruption caused by planned union action.’

The PCS, which represents UKBA staff, said that neither the agency nor the Home Office had told the union what cover would be provided.

The spokesman said: ‘We haven’t been told what clearance these people will have. This underlines how desperate they are, that they think they can draft in volunteers to do a job that takes months and months of training.’

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