Thursday, November 3, 2011

Pensions reforms strike still on despite concessions to union demands

10:31 AM | Posted by Free Game Zone | Edit Post

Government proposes two main changes in the original offer, but insists TUC union action "probably go"

Union officials are under way with plans for a national strike, which affects 3 million public sector workers, after the TUC gave a lukewarm response to a series of concessions in the reform government pensions.

As leaders of employers accused of Ministers too many concessions, union leaders said they still had a number of concerns about the government's plans to raise the retirement age and employee contributions increases. The unions are also challenging in court the government plans to increase the power of retreat for the CPI inflation rate lower than the highest rate of RPI.

The government warned the unions that it was "absolutely" within his gift to dilute his candidacy after tracking the response of concessions set by Danny Alexander, the Chief Secretary of the Treasury. In a statement to MPs, Alexander announced that the government revises its plans in two ways:

. The "maximum cost" will increase by 8% in the previous offer. This means that the accumulation rate - the percentage of salary for each year earned pension - is based on a sixteenth of average salary over the first 65a. The changes would mean a teacher with a lifetime of service earn £ 37 800 to receive a retirement pension of £ 25.200. According to initial plans of the pension would be £ 23.200. If there is no change in the final salary scheme today, they would receive £ 19.100.

. full implementation of reforms will be delayed by seven years. According to the original schedule, the changes were due to the introduction in 2015. Alexander gave a commitment that everyone in the 10 years of retirement on April 1 of next year will not see a reduction in their pension pot. This means that changes will not come fully into force until April 2022.

Alexander also reached out to union leaders, saying he hoped an agreement would last 25 years or more, suggesting that the Government considers that this agreement could last until mid-century.

Brendan Barber, TUC General Secretary, who led a trade union delegation in negotiations Wednesday with Alexander and the Cabinet Office Minister Francis Maude, congratulated the Government to give some ground. "It is important that the government has moved. Came a little late in this process and we welcome that one step today. Is it a movement of materials in place. "

however, said the TUC and unions as the three largest in the United Kingdom - Unison, Unite and GMB - will continue with preparations for a day of strikes and demonstrations on November 30. "At this stage no doubt continue."
  • Barber said union negotiators now have to calculate the impact of government proposals in separate plans for education, health, public services and local government workers.
  • The government is under pressure from the other side of the spectrum. The Institute of Directors has warned ministers that they have made too many concessions and said that ministers can repeat the mistake of the previous government, which dilutes its reforms. Simon Walker, General Manager IOD, said: "The public sector unions can not be allowed to hold a gun to the head of government in this way."
  • Walker said the review conducted by Lord Hutton, the work of former Secretary of Labor and pensions, should be maintained. "The proposed revision of Hutton were the minimum necessary to bring the public sector pensions on a sustainable basis. Every new concession increases the inevitability of future revisions. This is not an issue that can last 25 years."
  • The government, which was alarmed by criticism of the IOD has been given too much, took a strong position. Maude said: "This offer is subject to an agreement is not an unconditional offer Nothing is agreed until everything is agreed ..." Asked if the government imposes an agreement if the union does not not accept the offer, Maude said: "It is absolutely within our gift to do."
Alexander adopted a more emollient sources and the government made it clear that the offer would be withdrawn if the strike continues. "This offer is subject to an agreement. I hope to reach an agreement. This offer is positive. Conditionality is more carrot than stick. But of course, I reserve the right to reconsider whether these improvements are appropriate in the circumstances that agreement is not reached. "
Alexander had previously told MPs insisted that the central axis of the pension reform proposed by Lord Hutton will follow. Hutton said final salary pensions are inaccessible as the aging population, and to enjoy the highest paid civil servants. Pensions in the future will be based on an average salary for life and a greater contribution of its employees.

Treasury Chief Secretary told MPs:. "We need reforms to secure pension costs are sustainable in the long term and ensure that the costs and risks are shared equally between employees and taxpayers, I think this package is affordable. I think that it is just not only for public sector workers, but offers significant long-term savings for taxpayers who continue to make significant contributions to their pension. If the reform along these lines agree, I think we have much to take at least 25 years and no hope. "

Work challenge David Cameron to accept the offer and report the attacks, telling MPs: "I really think it is time for the other party was clearly not supporting the strike later this months. .. It seems absolutely vital that we do something that is fair to taxpayers and fair to public sector workers.



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