Unions call off public sector strike

Tuesday, 22 March 2005 12:00 AM

The biggest one day strike since 1926 has been called off after last minute negotiations between unions and the Government.

Around 1.5 million public sector workers were set to strike against Government plans to raise the retirement age to 65.

But a last minute intervention from Deputy Prime Minister John Prescott saw the unions promised that the proposals would not come into force in April and talks would be re-opened by Work and Pensions Secretary Alan Johnson.

UNISON general secretary, Dave Prentis, who led talks on behalf of local government unions, said: "Our aim throughout talks with the Deputy Prime Minister has been to have these regulations revoked and to open negotiations on how we can have a viable, sustainable pension scheme that will benefit all. We have achieved both these objectives and we now look forward to real talks on the future of the pension schemes."

Separately, Mark Serwotka, the general secretary of the civil service union the PCS also announced that the PCS would not strike on Wednesday.

Mr Serwotka said: "Through our positive campaigning and vote for industrial action what was previously deemed as set in stone and non-negotiable is now open for negotiation representing a hard won change of policy by the Government."

Bill Midgley, president of the British Chamber of Commerce, though described the decision as an "alarming development."

According to Mr Midgley, the burden of public sector pensions being placed on individual tax payers and businesses is too great and no longer justified.

"Generous public sector schemes used to be justified on the basis that wages were lower than in the private sector. Better pension benefits were therefore needed in order to recruit and retain staff. Recent pay rises in the public sector, however, mean that this is no longer the case and there is no justification for back-tracking on vitally needed pension reforms," said Mr Midgley, speaking to the Financial Times.

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