PCS: Judge vindicates union over cuts to civil service redundancy pay

Friday, 18 June 2010 12:00 AM

A High Court judge has dealt the final blow to the government's unlawful cuts to civil service redundancy pay.

Mr Justice Sales confirmed today (18 June) the Public and Commercial Services union was right to challenge the way the terms of the civil service compensation scheme, which governs redundancy payments, were slashed.

The decision quashes an amendment to the scheme that the previous government had claimed was effective from 1 April, and requires the new government to enter into negotiations with PCS if it wants to change the scheme in future.

While the judge quashed the detrimental changes to the scheme, he retained elements - relating to protection against age discrimination - that provide improvements. The union says this shows it was not opposed to change on principle, but that any alterations had to be fair and agreed.

The union's challenge, by way of a judicial review, was heard over two days in April and the judge ruled on 10 May that the previous government had acted unlawfully. Both sides were then given a few weeks to reach an agreement on the terms of an order to quash the amendment, but failed to do so, and the case went back to court for a final hearing on 9 June.

The union always maintained the changes to the compensation scheme would have made it easier and cheaper to cut tens of thousands of civil service jobs and privatise more of our public services.

PCS deputy general secretary Hugh Lanning said: "We are delighted with the ruling that proves our members were right to oppose the cuts that the previous government tried to force through.

"It's rare for a High Court judge to side with a trade union, so we believe this vindicates our stance and our assertion all along that this was a grossly unfair attempt by the government to rip up the rights of its own workforce.

"The new government now has a golden opportunity to show it is truly committed to consultation and negotiation, by getting round the table with us to agree a new scheme that is fair and protects the rights of civil and public servants."

Richard Arthur, head of trade union law at Thompsons Solicitors, who acted for PCS, said: "The ruling confirms that a government cannot simply change redundancy rights which have already accrued for civil servants without agreement by the unions.

"With the exception of some favourable age-related changes, all the benefits in the new scheme are quashed and all the benefits in the old one are protected. The new scheme that was imposed on civil servants was simply unlawful."

The ruling comes days before the coalition government is expected to announce further cuts in public spending in its emergency budget next Tuesday (22 June).

PCS will hold events across the country on Tuesday, including outside the Treasury in Parliament Street in London between 12pm and 1pm, and will launch its Tax Justice and Jobs report that details how more than £120 billion is estimated to be lost to the economy every year through tax being evaded, avoided and uncollected.

ENDS

Notes

- How the case progressed:

31 July 2009: After months of negotiations, the Cabinet Office unilaterally announces plans to cut the civil service compensation scheme

Autumn 2009: About 18,000 people respond to the government's official consultation and 35,000 PCS members attend workplace meetings organised by the union

4 December 2009: The Cabinet Office announces slightly improved plans for the scheme

25 February 2010: PCS announces intention to take industrial action after strong support in a ballot

8 and 9 March 2010: Around 200,000 PCS members take strike action

24 March 2010: Former chancellor Alistair Darling crosses two picket lines on his way to the Commons to deliver his budget

22 and 23 April 2010: Two-day judicial review hearing in the High Court

10 May 2010: Mr Justice Sales rules the changes unlawful

9 June 2010: Final hearing to determine terms of the quashing order

18 June 2010: Mr Justice Sales confirms PCS was right to oppose the cuts

- For information and interview requests, contact PCS national press officer Richard Simcox on 020 7801 2747 or 07833 978216

- The Public and Commercial Services union represents civil and public servants in central government. It has more than 300,000 members in over 200 departments and agencies. It also represents workers in parts of government transferred to the private sector. PCS is the UK's fifth largest union and is affiliated to the TUC. The general secretary is Mark Serwotka and the president is Janice Godrich

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