Unite fears ‘lynch mob’ mentality to public sector pensions

Unite fears the government, media, pension industry ‘experts’ and private sector employers are acting ‘like a lynch mob’ in demanding reductions in public sector pensions.

Unite, which represents more than 250,000 public sector workers, believes this coalition of vested interests has already decided that public sector pensions should be reduced, and has created a climate of hysteria designed to manipulate the facts to make the case for this.

In its evidence submitted to the Hutton commission of public sector pensions, the union argued that:

Government is uniquely placed to provide pensions for its employees at a much lower cost than is possible for private sector employers
Public sector pensions are being funded in a controlled and responsible manner.
The agreed ‘cap and share’ framework provides a basis that will ensure that scheme costs are sustainable in the face of rising cost.
The imposition of a change in indexation to the Consumer Price Index (CPI), which can be construed as pre-judging the commission’s findings, is in breach of understandings surrounding cost-sharing, as also would be the imposition of any across-the-board contribution increase.
Public sector pensions are proportional to pay and earned by service and so higher pensions reflect not gold-plating but a just reward for a long career in public service.

The commission, headed by former Labour cabinet minister John Hutton, is due to make an interim report in September, with the review’s full proposals by the time of the 2011 budget.

Unite joint general secretary, Derek Simpson, said: ”We are pleased to be able to present a defence of public sector pension provision, which Unite is doing against a lynch mob mentality by a coalition of vested interests – government, the media, so-called ‘experts and private sector employers – wishing to reduce public sector pensions.

”There is a climate of hysteria being generated, with facts being manipulated to fit a pre-judged case. This unholy alliance, embracing CBI leaders and Nick Clegg, already have good pension nest eggs, which the average private and public sector employees can only dream about.

”Last year, the TUC said that the majority of public sector pensioners received a pension of less than £5,000 a year and that half the women on NHS pensions receive less than £3,500 annually. We are not talking about great riches here.

”This review will potentially affect the livelihoods of many millions of past and present public service employees and their views as members need to be properly considered, alongside those of taxpayers’ in general. It is unfortunate that in relation to pension debates that members’ interests are very rarely given due consideration.

”The first stage of the commission’s work has been described as ‘interim’, but it is clear from the terms of reference that, in fact, the first report will be required to make a final judgement on whether there is a case for change. Otherwise, it could not begin to make recommendations for the short term savings the government is clearly keen to realise.

”Unite questions the independence of this commission and whether it can resist the forceful lobby wishing to drastically erode the modest pensions of millions of public sector workers.”