Defend Public service Pensions now!
Public sector workers as well as facing uncertainty over cuts and possible redundancy are facing attacks on our pensions.
The media are already attacking the "gold plated pensions" of public sector workers on a daily basis - yet we know that most ps workers get a tiny pension, in Local Gov the average pension is around 3 thousand for the mainly low paid women.
Yet this is one area that I am hopeful that unions will make a firm stand on - indeed at our annual conference early this month UNISON General Secretary Dave Prentis pledged support for national strike action in defence of public service pensions, which went down very well on conference floor.
As Jon blogged at the time (http://jonrogers1963.blogspot.com/2010/06/unisons-retired-members-under-attack.html), the Government have announced that in future pensions will be uprated in line with the Consumer Prices Index (CPI) rather than the Retail Prices Index (RPI) -
The Oxfordshire Health branch has a good focus on this major attack upon public service pensions which has already taken place under this Government - and on the need for a campaigning response see (http://www.unisonoxonhealth.org.uk/prosecute.htm).
The practical implication of the change to cpi rather than rpi (which - of course is why they did it!) is that increases in pensions will generally be lower than would otherwise be the case. To quote from the commentary of PWC on the budget (http://www.ukmediacentre.pwc.com/News-Releases/Emergency-Budget-2010-PwC-comment-on-Public-sector-pay-and-pensions-ec4.aspx); "The announcement of a switch from the Retail Price Index to the Consumer Price Index as the basis for public sector pensions' inflation will have a very real impact. Had this new policy been applied in the year to May 2010, this shift would have resulted in a 1.7% decrease in the adjustment.
No surprise then that the Chancellor announced plans to scrap the default retirement age, as it looks like public sector workers may have to work longer to protect their retirements."
Going back to the Oxfordshire Health Branch they have also published on their website an extract from an NHS staff handbook which commits to the uprating of pensions in line with the RPI in support of an argument that the Government are in breach of contract.
The Local Gov Pension Scheme website (http://www.lgps.org.uk/lge/core/page.do?pageId=125497) simply states that; "after you retire, your pension keeps pace with cost of living increases" - although anyone reading that would think that the cost of living would include the housing costs which are included in the RPI but not the CPI! (But obviously pensioners don't need housing??)
Given the doctrine of Parliamentary sovereignty it may be optimistic for us to call for legal action - but why not :)
We should certainly explore every possibility - Will this need an amendment to the Pension Regulations? Is there a requirement on the Government to consult? Is there scope for a judicial review? Etc
We could also consider declaring a trade dispute with the appropriate Secretary of State as the Government moves to impose this detrimental change upon public service pensions so that we open up the possibility of the national action in defence of public service pensions for which our General Secretary called at Conference.
Of course its no surprise that the Tories have already gone back on promises made before the election - in a letter to the civil service pensioners alliance (see http://www.cspa.co.uk/ ) on the 27 April 2010, Philip Hammond said on behalf of the Conservatives "Indexation of pensions in payment is an established part of pensions legislation. The Conservative Party has no plans to change the current index-linking of public sector pensions in payment. We agree with the view that the right to indexation of pensions already accrued is part of the accrued pension rights and those rights will be protected."
Yet despite this promise one of the first things the tories have done is to change the index linking.
It is good to see branches like oxon health (and the cspa) tackling these issues but we urgently need a national response and campaign including getting some media coverage.
Not only in unison but across the unions - hopefully our NEC members and TUC delegation ensure that this is on the agenda for September's TUC - which should agree to coordinate a campaign (including strike action) across the whole public sector.
Dave Prentis also said at Conference that "now is our time" - now is indeed the time to begin to put words into action.
We must start this defence early and as loud as possible - if we let them reduce the value of all public sector pensions in this way they'll be back for more.
MarshaJane
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www.unionfutures.blogspot.com
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