Prentis: Government should suspend pension reform

Unions warn Labour over pensions

Unions warn Labour over pensions

Trade unions from across the public sector are warning Labour that there is “widespread anger and resentment” over proposed reforms to public sector pension schemes.

There will be demonstrations next month against the plans, and UNISON have written to MPs to warn that the row could damage Labour’s election prospects.

The Government is seeking to raise the pension age to 65 across a number of government sectors and move away from final salary pension schemes towards career average schemes.

It says that the moves are necessary as people are living longer and that they will benefit low paid workers and those who choose to take career breaks.

But, the unions claim what is on offer is second-rate.

UNISON general secretary Dave Prentis has written to MPs telling them: “The Government needs the goodwill of public service workers.”

He says the proposed changes could be “especially harmful for Labour”.

Changes to the local government pension scheme are due to come into effect in less than three months – one year ahead of changes to other public sector schemes.

Mr Prentis is urging the party leadership to suspend the proposals “so that the Government and the trade unions can work constructively together.”

And there will be a day of action on 18 February. Although union bosses stopped short of industrial action, they anticipate street rallies, protest meetings, pressure exerted on local constituency MPs and other events.

But union leaders did threaten strike action later in the year if plans to change pensions across the public sector were introduced.

TUC general secretary, Brendan Barber, said unions and their members were “very angry” at the proposals.

“There is enormous concern at the impact these proposals will have upon the lives of millions of public sector workers. We are determined to keep up the pressure on the Government,” he said.

The TUC wants to hold a “high-level” meeting with Cabinet minister David Miliband, the man with responsibility for the public services forum.