Public sector strike may be averted following pension talks

Saturday, 19 March 2005 12:00 AM

A planned strike by one and a half million public sector workers could be called off after the Government promised civil servants a "fresh start" over pension plans.

Ministers have promised to revoke changes to the retirement age, which are due to come into effect on April 1.

Council workers and civil servants had planned a 24-hour walkout on Wednesday in protest at the plans to increase the public sector pension age from 60 to 65.

But Deputy Prime Minister John Prescott announced during talks that he would revoke the changes to the local government pension scheme.

The promised changes in regard to the pensions of local authority workers are also expected to spread to civil servants who are involved in a separate row over pensions.

Although union officials have yet to announce their next move, it looks likely that the decision will save the Government from an embarrassing strike, just weeks before the expected general election on May 5.

"I know from conversations I have had with public service workers across the country that there have been real concerns over our plans to change public service pension provision," said Prime Minister Tony Blair.

"I am hopeful that this announcement means this issue can be resolved and the threat of industrial action withdrawn," he added.

Work and Pensions Secretary Alan Johnson had previously acknowledged that there had been "misunderstandings and suspicions" of the planned reforms.

Commenting on the Government's decision to revoke the plans, the unions involved in negotiations issued a joint statement.

"After three weeks of intensive negotiations, the deputy prime minister has made clear his intention to revoke the April 2005 changes to the local government pension scheme and to introduce a new negotiating body to deal with the long-term future of the scheme," said the statement from Unison, Amicus, the GMB, the TGWU and Ucatt.

"The unions welcome the fresh start and will be meeting to discuss next week's planned strike," the statement concluded.

Tags: