Council unions suspend pension deal in contribution confusion

20 Dec 11
Council trade unions have this evening suspended their agreement with the government over pension reforms.

By Richard Johnstone | 20 December 2011

Council trade unions have this evening suspended their agreement with the government over pension reforms.

Unison, Unite and the GMB said they were ‘alarmed’ by a response from Local Government Secretary Eric Pickles that put a new 10.9% limit on employer contributions to the Local Government Pension Scheme, which is lower than many currently being paid.

Pickles was formally responding to the unions and Local Government Association after they reached agreement on the principles for change.

The Department for Communities and Local Government said that they planned to issue a clarification, but the unions are demanding an ‘urgent meeting’.

A statement by the group said: ‘We understand the secretary of state’s response has subsequently been withdrawn. In light of this confusion, we therefore suspend our agreement, and are now seeking an urgent meeting with the government to establish an agreed way forward.’

Unison’s head of local government, Heather Wakefield, said: ‘The announcement today from Eric Pickles undermines trust and confidence in the relationship with the government over negotiations surrounding the Local Government Pensions scheme.

‘We are disappointed that a positive way forward appears to have been undermined in this way, and hope that government, the LGA and the trade unions can reach agreement on a way forward.’

Unite’s national officer for local authorities, Peter Allenson, added: ‘There is a real crisis of confidence and trust which really can only be restored by this urgent meeting as soon as possible.’

The GMB union said that this cap represented ‘new conditions laid down by Eric Pickles today’.

GMB national secretary for public services Brian Strutton said that the agreement had been shared in advance with government and no problems had been raised.

'It is therefore all the more surprising that as Danny Alexander was announcing our agreement to the House of Commons, his Cabinet colleague Eric Pickles was completely undermining it. I think we need to restore trust and confidence urgently,' he added.

Spacer

CIPFA logo

PF Jobsite logo

Did you enjoy this article?

AddToAny

Top