By Lucy Phillips
20 May 2011
Cabinet Office minister Francis Maude yesterday pledged to work with public sector unions over changes to pensions, denying that decisions had already been made.
Addressing the annual conference of the FDA senior civil servants union in London, he said: ‘Yes, the government is serious about engaging with the unions. We are not going through the motions.
‘There are lots of variables in there and lots of things that are up for discussion.’
Maude and Chief Secretary to the Treasury Danny Alexander are leading on the negotiations with the unions. Members are unhappy at government proposals such as increasing employee contributions and raising the age at which pensions can be claimed. The changes were among the recommendations made by Lord Hutton’s review of public service pensions, commissioned and later accepted by the government.
Maude rejected union accusations that ministers would ‘cherry pick’ from Hutton’s report. He added: ‘These discussions are tough and will be tough but we are listening to the arguments.’
Maude described as ‘disappointing’ Wednesday’s decision by the PCS union to ballot for strike action over pension changes while discussions were taking place.
He added: ‘Is everyone in the end going to be completely happy? No, I guarantee that. But we will end up with a sustainable settlement for public sector pensions.’
Defined benefit schemes would be kept, he said, unlike in the private sector where many employers have swapped to defined contribution models.
Maude defended the government’s decision to switch the pension up-rating from the Retail Prices Index measure of inflation to the generally lower Consumer Prices Index without negotiating with unions first.
He said: ‘There is a clear view that the increase in pensions should reflect the increase in cost of living. The Consumer Prices Index is generally regarded as the better reflection of the cost of living.’
He added that changing the indexing was one of the few measures that could be taken to share the burden among those receiving and accruing pensions at the moment and those who will in the future.
Earlier, in his address to delegates, Maude said this a ‘stressful, difficult, painful’ time for civil servants as the government sought to put the public finances on a more stable footing.
Responding to the address, FDA general secretary Jonathan Baume reiterated that the union would not be able to rule out industrial action over pensions.
He concluded: ‘Our members are feeling anxious, angry and let down by the government. We have had a contract with the government over many years and members feel on the whole it is not being honoured.
‘I think you should recognise in terms of balloting on proposals the government will put forward, members will have to think very, very hard.’
The moderate teaching union, the Association of Teachers and Lecturers, today announced that it had started its first ever ballot for industrial action over changes to teachers’ pensions.
General secretary Mary Bousted said: ‘Balloting our members to strike is a last resort, but the government has given us no choice. The government has totally failed to produce any justification for the changes to teachers’ and lecturers’ pensions and has consistently failed to change any of its plans despite months of discussions at all levels.’
