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More Talks Needed to Avert Pension Strike

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Date / 14th March 2005

The GMB – Britain’s second largest Public Sector Union – together with four other local authority unions, representing a total of 1.4 million employees today described talks with Deputy Prime Minister John Prescott and national employers last night (10 March) over proposed Government changes to their pension scheme as constructive. Progress was made and further talks will go ahead early next week.

UK-wide ballots in four of the five unions have resulted in massive majorities in favour of strike action, which will result in an initial one-day strike in councils across the UK on 23 March unless agreement can be reached .

Yesterday's ballot results in Amicus, T & G, Ucatt and UNISON recorded votes of between 73% and 87% in favour of strike action. The five unions - including the GMB which has held ballots of its members in four regions - are angry at changes to raise the retirement and pension age, being imposed a year ahead of other public services. Feelings among members who regard themselves as the 'poor relations' of the public sector are running high.

Research by the unions has shown that many pension funds are in deficit, largely as a result of pension holidays taken by some councils in the early 1990's. Decisions by the then Conservative Government enabled councils to raid pension funds to subsidise the move from the hated Poll Tax to the Council Tax. They regard the changes as a major cause of the present push to reduce pension benefits.

GMB General Secretary Kevin Curran said:

"GMB branch ballots will be coming in over the next couple of days and we expect a large vote in favour of industrial action. GMB members are particularly concerned to ensure we have negotiating rights. We are pleased that there seems to be recognition and acceptance that trade unions must have negotiating rights over their members' pensions, which was after all a commitment from Warwick.

"To give this meaning John Prescott should listen to our case for combining the imminent and long term changes into a single negotiation to give a total solution to the problem of local government pensions."

UNISON General Secretary Dave Prentis said:

"Our members who have paid their pension contributions week in, week out are very angry and are not prepared to accept changes by diktat. The average local government pension is just £3,800 a year - not a 'fat cat' sum. Low pay within councils means low pensions.

"UNISON wants real negotiations for the first time on a sustainable good quality pension scheme which benefits all local government workers and which councils and staff can afford. Let's hope the LGA and the employers see sense and abandon these changes so that real negotiations can take place".

Jack Dromey, T&G Deputy General Secretary, said:

"Michael Howard cut pension funding to smooth the move from Poll Tax to Council Tax. Councils then took pensions holidays. Now there is a deficit in the Local Government Pension Scheme "Council workers, who paid their contributions throughout, are being asked to pay the price with poorer pensions."

"T&G members have voted by a massive 84% majority to say no. Government and local government should now sit down with the trade unions to negotiate a sensible solution which ensures the long-term viability of a good pension scheme."

Alan Ritchie, UCATT General Secretary, said:

"Our members are extremely concerned about their pension provision, we hope
that through continued constructive dialogue further progress can be made.

"The ballot result shows the determination of our members to protect their
pension scheme."

Amicus National Officer, Gail Cartmail says,

"Progress is being made but passions are running high. If the strike on the 23rd March goes ahead public sector workers will make it a big day. We hope that in the coming week the Government will meet our demands and maintain a public sector pension that recognises the contribution these key workers make to the running of our public services."

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