19 November 2004
Ministers must face down fierce opposition to their pension proposals from public service unions before the general election, including calls for a national strike over plans to raise retirement ages.
Mark Serwotka, general secretary of the Public and Commercial Services union, Whitehall's largest trade body, issued a defiant threat to the government at a pensions rally this week, calling on other public sector unions to join the PCS in a national strike next spring.
Speaking at the Trades Union Congress event on November 16, Serwotka said that the government's approach 'raises the possibility of unions across the public sector taking united action in a one-day strike.'
'We do not believe that the run-up to a general election is the time to stay quiet,' he warned.
Other public sector unions, including Natfhe teaching staff, also condemned the proposals.
The government has launched a co-ordinated programme to reduce the cost of publicsector pensions, including reform of the civil service, local government, health, firefighters' and teachers' retirement plans.
Ministers want to raise the retirement age in the sector from 60 to 65, in line with the private sphere, and increase the minimum retirement age from 50 to 55.
Unions view the initiative as an attack on pay and conditions because staff in each sector will receive lower pensions, be forced to work for longer or be asked to contribute more.
Unison general secretary Dave Prentis and Fire Brigades Union leader Andy Gilchrist also warned they could take action over the issue, but said there had been no discussions with the PCS over co-ordinated strikes.
Gilchrist told Public Finance: 'The government is attacking public sector pensions at the same time it has urged the public to save more for retirement.'
Referring to pensioner action against rising council tax levels, he added: 'The public sector should take a leaf out of the pensioners' book and work together to face down these threats.'
FDA general secretary Jonathan Baume also condemned the government's cost-cutting exercise, which will affect up to
5 million public sector staff. 'The government uses the argument that public pensions must be brought into line with devalued plans in the private sector. Equality of misery is not a principle I have ever fought for.'
Baume also mocked ministers' 'hypocrisy' in raising MPs' retirement pots. 'The MPs' scheme has always been gold standard. Now it has been placed in a platinum wrapper and studded with diamonds,' he said.
MPs accrue risk-free pensions at one-fortieth of their £55,118 salary. Most final salary schemes pay pensions in sixtieths or eightieths.
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