Public sector pension talks jeopardised by naïve playground tactics
UNISON General Secretary, Dave Prentis, today rounded on Government ministers for putting public sector pension talks in “jeopardy” by their ”naïve tactics” and apparent lack of negotiating skills. And called on them to abandon the playground games and get serious.He said: “We entered into the scheme specific talks on public sector pensions in good faith and we genuinely believe we are making progress, albeit slowly. But these talks are being put in jeopardy by the crude and naïve tactics of Government ministers who don’t seem to understand the word negotiate.“ The government must take its responsibilities seriously, and stop treating these talks like some kind of playground game.“Let’s not forget that these talks are about real people, hard-working individuals who signed up to, and pay into, a pension scheme that is supposed to cushion them against poverty in old age. Extra contributions won’t go back into the pension schemes, but straight to the Treasury to pay off the country’s deficit – effectively a tax on public sector workers to pay for the bankers’ mess. That is totally unjust. “It is totally unhelpful to the progress of these talks to release their bargaining position as though it is set in stone. If it is set in stone, then there is no point in having a single further meeting.” The union insists that any changes should be based on evidence and not political ideology. Average pension in local government is £4,000, but for women its just £2,800 (£56 a week) and in health its just £7,500, and £3,000 for women. Members of those schemes pay in between 5.5% and 7.5% of their salaries to save for their retirement. If they did not save, they would end up on means-tested benefits at a cost to taxpayers.Both the local government and the health schemes are cash rich and were renegotiated a few years ago to make them sustainable and affordable – longevity costs would be paid by the employee not the employer.The union argues that making people pay more, work longer for a smaller pension is unnecessary, unjust and unworkable. People will leave the schemes, if they become too expensive, and they will collapse.
Sunday, July 31, 2011
Wednesday, July 27, 2011
Southampton social care staff to strike
Over 450 UNISON and Unite members working in social care are set to strike on Wednesday 3 August as part of the continuing industrial action against pay cuts. The council had previously written to all staff informing them of their intention to sack them and rehire them on worse contracts.City-wide action so far has seen waste and recycling workers, street cleaners, library workers, Itchen toll bridge collectors, parking enforcement officers, contact supervisors (social care), vehicle mechanics, port health officers and building maintenance workers go on strike. Those on strike on Wednesday 3 August will be the whole of the safeguarding division and all of health and adult care apart from day services, home care, residential homes, meals on wheels and commissioning. Action on 3 August will begin with a rally at 11am in Guildhall Square. This will be followed at 12noon by a meeting for all social work staff. There will be picket lines at Marland House, Oakhill House, Herbert Collins House, Thomas Lewis House, Cannon Street offices and College Keep. On 4 August the City Council will be given seven days notice of areas in social work who will be on strike for a longer period. A further strike of all social work staff is planned for later in August.Strong support continues to be received by the branch from UNISON branches across the country. Regional manager Steve Brazier reported that the branch received a message of support and donation from the Shetland Islands UNISON branch as well as receiving an ongoing commitment from UNISON at a regional and national level to provide the financial resources needed to continue with the dispute. There will be a joint UNISON / Unite membership meeting on Wednesday 10 August at 12.30pm in Above Bar Church to decide the next steps in the campaign.
Over 450 UNISON and Unite members working in social care are set to strike on Wednesday 3 August as part of the continuing industrial action against pay cuts. The council had previously written to all staff informing them of their intention to sack them and rehire them on worse contracts.City-wide action so far has seen waste and recycling workers, street cleaners, library workers, Itchen toll bridge collectors, parking enforcement officers, contact supervisors (social care), vehicle mechanics, port health officers and building maintenance workers go on strike. Those on strike on Wednesday 3 August will be the whole of the safeguarding division and all of health and adult care apart from day services, home care, residential homes, meals on wheels and commissioning. Action on 3 August will begin with a rally at 11am in Guildhall Square. This will be followed at 12noon by a meeting for all social work staff. There will be picket lines at Marland House, Oakhill House, Herbert Collins House, Thomas Lewis House, Cannon Street offices and College Keep. On 4 August the City Council will be given seven days notice of areas in social work who will be on strike for a longer period. A further strike of all social work staff is planned for later in August.Strong support continues to be received by the branch from UNISON branches across the country. Regional manager Steve Brazier reported that the branch received a message of support and donation from the Shetland Islands UNISON branch as well as receiving an ongoing commitment from UNISON at a regional and national level to provide the financial resources needed to continue with the dispute. There will be a joint UNISON / Unite membership meeting on Wednesday 10 August at 12.30pm in Above Bar Church to decide the next steps in the campaign.
Tuesday, July 26, 2011
Lansley's surprise support for UNISON pensions campaign
UNISON’s campaign against the government’s pensions’ proposals got surprise backing this weekend from Health Secretary Andrew Lansley, after a letter he wrote to the Treasury was leaked to a national newspaper. In the letter, Andrew Lansley warns that the proposals are ‘inappropriate’ and ‘unrealistic’, and would hit women particularly hard. He reiterated one of the union’s big concerns, that putting contributions up would force people to leave the schemes and rely on benefits when they retire – storing up a massive bill for the taxpayer. Dave Prentis, UNISON General Secretary, said: “Even Tory ministers are waking up to how unjust, unreasonable and unworkable their own party’s proposals for public sector pensions are. Ever since the government came up with these plans, UNISON has been warning that people will leave the schemes if they are forced to pay more in contributions. “Health workers and local government staff already pay between five and eight percent of their salary into their pension. Stuck on a pay freeze and with inflation high, it would be impossible for many to afford more. “Paying into the pension scheme is the best way for workers to save for their retirement – the alternative is relying on means-tested benefits - at huge cost to the public purse.“The attack on pensions has nothing to do with affordability – it is based on ideology. Independent studies have shown the schemes are affordable and sustainable for the long term. In the health scheme, £2 billion more goes in than out every year. The Treasury would use any increase in revenue to plug the deficit – it will not go towards pensions.”
UNISON’s campaign against the government’s pensions’ proposals got surprise backing this weekend from Health Secretary Andrew Lansley, after a letter he wrote to the Treasury was leaked to a national newspaper. In the letter, Andrew Lansley warns that the proposals are ‘inappropriate’ and ‘unrealistic’, and would hit women particularly hard. He reiterated one of the union’s big concerns, that putting contributions up would force people to leave the schemes and rely on benefits when they retire – storing up a massive bill for the taxpayer. Dave Prentis, UNISON General Secretary, said: “Even Tory ministers are waking up to how unjust, unreasonable and unworkable their own party’s proposals for public sector pensions are. Ever since the government came up with these plans, UNISON has been warning that people will leave the schemes if they are forced to pay more in contributions. “Health workers and local government staff already pay between five and eight percent of their salary into their pension. Stuck on a pay freeze and with inflation high, it would be impossible for many to afford more. “Paying into the pension scheme is the best way for workers to save for their retirement – the alternative is relying on means-tested benefits - at huge cost to the public purse.“The attack on pensions has nothing to do with affordability – it is based on ideology. Independent studies have shown the schemes are affordable and sustainable for the long term. In the health scheme, £2 billion more goes in than out every year. The Treasury would use any increase in revenue to plug the deficit – it will not go towards pensions.”
Monday, July 25, 2011
Lack of private sector pensions will cost tax payer billions says UNISON
UNISON, the UK’s largest union, has called on the government to deal with the real pensions crisis - the alarming lack of private sector pension provision that will place a colossal burden onto the taxpayer. A shocking two-thirds of private sector employees – 15 million workers - are not in a workplace pension to which their employer contributes. This could mean they are forced to rely on benefit top ups paid for by the taxpayer when they retire. UNISON figures reveal that every worker locked out of saving for their retirement costs the taxpayer £15,000 – meaning a potential extra benefit bill running into hundreds of billions of pounds. The union is calling for decent pensions for all workers – in both public and private sectors. It also highlighted recent studies that have shown decisively that public sector schemes are affordable and sustainable for the long term. Dave Prentis, UNISON General Secretary, said: “It is shocking that two thirds of private sector workers are not in a workplace pension to which their employer contributes. These companies are shirking their responsibilities to their workers, pushing the burden onto the taxpayer. For every worker locked out of saving for their retirement, the taxpayer could get stung for billions more in benefit payments. “But instead of dealing with skinflint employers, the government shamelessly uses the lack of private sector pensions as a stick to beat public sector workers with. The latest round of attacks on public sector pensions is based on myths and ideology. Research by independent experts such as the Institute for Fiscal Studies (IFS) and the Chartered Institute of Public Finance and Accountancy (CIPFA) prove the schemes are affordable and sustainable for the long-term. “And the government’s plans to auto-enrole workers into the NEST scheme will not go far enough. Unless we bring all pensions up to a decent level, we are running the risk of condemning a generation of people into poverty in their retirement – and a huge burden on the taxpayer.” *The possible cost to the taxpayer is over £15,000 for each worker that reaches retirement with just the state pension to rely on. This is based on the following calculation:
• For a single person, the Guaranteed Credit element of the Pension Credit is £132.60 a week.
• According to the “Interim Life Tables” produced by National Statistics, a male aged 65 today could reasonably expect to live for another 17.5 years – i.e. to 82.5.
• The average weekly state pension in payment (i.e. Basic State Pension plus S2P etc) in 08/09 was £116 a week.
This means that if everything remained constant and a person reached SPA with no or very limited private pension savings and an “average” state pension , the cost to the taxpayer of paying Pension Credit at a rate of £16.60 a week for the next 17.5 years would be £15,106 (i.e. 16.60* 52) * 17.5.
UNISON, the UK’s largest union, has called on the government to deal with the real pensions crisis - the alarming lack of private sector pension provision that will place a colossal burden onto the taxpayer. A shocking two-thirds of private sector employees – 15 million workers - are not in a workplace pension to which their employer contributes. This could mean they are forced to rely on benefit top ups paid for by the taxpayer when they retire. UNISON figures reveal that every worker locked out of saving for their retirement costs the taxpayer £15,000 – meaning a potential extra benefit bill running into hundreds of billions of pounds. The union is calling for decent pensions for all workers – in both public and private sectors. It also highlighted recent studies that have shown decisively that public sector schemes are affordable and sustainable for the long term. Dave Prentis, UNISON General Secretary, said: “It is shocking that two thirds of private sector workers are not in a workplace pension to which their employer contributes. These companies are shirking their responsibilities to their workers, pushing the burden onto the taxpayer. For every worker locked out of saving for their retirement, the taxpayer could get stung for billions more in benefit payments. “But instead of dealing with skinflint employers, the government shamelessly uses the lack of private sector pensions as a stick to beat public sector workers with. The latest round of attacks on public sector pensions is based on myths and ideology. Research by independent experts such as the Institute for Fiscal Studies (IFS) and the Chartered Institute of Public Finance and Accountancy (CIPFA) prove the schemes are affordable and sustainable for the long-term. “And the government’s plans to auto-enrole workers into the NEST scheme will not go far enough. Unless we bring all pensions up to a decent level, we are running the risk of condemning a generation of people into poverty in their retirement – and a huge burden on the taxpayer.” *The possible cost to the taxpayer is over £15,000 for each worker that reaches retirement with just the state pension to rely on. This is based on the following calculation:
• For a single person, the Guaranteed Credit element of the Pension Credit is £132.60 a week.
• According to the “Interim Life Tables” produced by National Statistics, a male aged 65 today could reasonably expect to live for another 17.5 years – i.e. to 82.5.
• The average weekly state pension in payment (i.e. Basic State Pension plus S2P etc) in 08/09 was £116 a week.
This means that if everything remained constant and a person reached SPA with no or very limited private pension savings and an “average” state pension , the cost to the taxpayer of paying Pension Credit at a rate of £16.60 a week for the next 17.5 years would be £15,106 (i.e. 16.60* 52) * 17.5.
Wednesday, July 20, 2011
Government statement on pensions - UNISON response
The Government’s statement, laid in the House of Commons yesterday, outlining its position on public sector pensions is merely that - it is not a statement of the trade union side position. Our position is outlined in a letter sent to Danny Alexander, on behalf of all unions by TUC General Secretary, Brendan Barber, and is copied below. All the unions and professional organisations are now in their relevant scheme specific talks to make sure that our pension rights are protected. Our aim is to get a final offer so that members can see whether or not their pension schemes will be maintained or reduced. We expect these talks to be serious and any proposed changes must be based on clear evidence and not simply an excuse to find money to pay off the country’s financial deficit.The TUC will be co-ordinating the timetable and the talks will take place over the coming months and are scheduled to conclude by the end of October. In the meantime, we are accelerating our planning of future industrial action strategy so that we can move quickly and effectively, should those talks fail.Brendan Barber’s letter to Danny Alexander Dear DannyThank you for your letter of today’s date setting out the Government's view on the state of play reached in our negotiations and proposing that our discussions should continue both in the central process and by opening up scheme by scheme discussions.As your letter reports in paragraph 3 a number of areas of agreement have been identified and we have agreed language on equality impacts, participation rates and opt outs, and scheme governance and administration. A number of practical issues arising from paragraph 11 on local government need further consideration and I will write to you separately on this.As you also know however significant differences remain on key issues and at this stage to avoid any risk of misunderstanding I need to make it clear that (contrary to the introduction to paragraph 12) we have not agreed to or accepted any of the Government’s objectives as described in your letter, or the change in indexation from RPI to CPI. Nevertheless, following a meeting of our PSLG, I am able to confirm that we are prepared to continue our discussions at central level and unions individually in each sector will be actively considering participating in scheme level talks in order to fully explore all the issues and to enable unions and their members to reach a judgement on whether agreement is possible or whether more unions will enter into dispute and plan industrial action. Yours sincerely
The Government’s statement, laid in the House of Commons yesterday, outlining its position on public sector pensions is merely that - it is not a statement of the trade union side position. Our position is outlined in a letter sent to Danny Alexander, on behalf of all unions by TUC General Secretary, Brendan Barber, and is copied below. All the unions and professional organisations are now in their relevant scheme specific talks to make sure that our pension rights are protected. Our aim is to get a final offer so that members can see whether or not their pension schemes will be maintained or reduced. We expect these talks to be serious and any proposed changes must be based on clear evidence and not simply an excuse to find money to pay off the country’s financial deficit.The TUC will be co-ordinating the timetable and the talks will take place over the coming months and are scheduled to conclude by the end of October. In the meantime, we are accelerating our planning of future industrial action strategy so that we can move quickly and effectively, should those talks fail.Brendan Barber’s letter to Danny Alexander Dear DannyThank you for your letter of today’s date setting out the Government's view on the state of play reached in our negotiations and proposing that our discussions should continue both in the central process and by opening up scheme by scheme discussions.As your letter reports in paragraph 3 a number of areas of agreement have been identified and we have agreed language on equality impacts, participation rates and opt outs, and scheme governance and administration. A number of practical issues arising from paragraph 11 on local government need further consideration and I will write to you separately on this.As you also know however significant differences remain on key issues and at this stage to avoid any risk of misunderstanding I need to make it clear that (contrary to the introduction to paragraph 12) we have not agreed to or accepted any of the Government’s objectives as described in your letter, or the change in indexation from RPI to CPI. Nevertheless, following a meeting of our PSLG, I am able to confirm that we are prepared to continue our discussions at central level and unions individually in each sector will be actively considering participating in scheme level talks in order to fully explore all the issues and to enable unions and their members to reach a judgement on whether agreement is possible or whether more unions will enter into dispute and plan industrial action. Yours sincerely
Tuesday, July 12, 2011
Shropshire Council could avoid pay cut
UNISON figures show that Shropshire Council has an alternative to sacking 6,500 of its staff and re-hiring them with a pay cut. The Conservative council has sent letters to all 6,500 of its staff saying that they will be dismissed on September 30 and re-hired the next day - if they agree to a 5.4% pay cut and changes to sick pay. Shropshire Council claims it needs to save £76m by 2013/14 and is demanding that £7m is found by workers taking a pay cut of 2.7%, from October 2011, and 2.7%, from October 2012. This is at a time when council workers have had their pay frozen for the last 2 years. The UKs largest union which is currently balloting members on industrial action has revealed an alternative approach the council should use to protect services and workers. Dave Prentis, UNISONs General Secretary, said: The council is letting hardworking council staff and the people who rely on vital local services take a hit with these cuts, when there is a viable alternative. Plans to force staff to accept another huge cut, or lose their jobs, will see many families struggle to put food on the table and keep a roof over their heads.Our plan would save the devastating impact of the pay cut - the council must not press on with plans to cut pay without considering our figures.UNISONs alternative budget for Shropshire: Shropshires council tax income grew by almost £1.3m this year (2011/12) - not because council tax went up but because there were more council taxpayers. However, Shropshire Council is assuming no growth in the taxbase between now and 2014/15.Shropshire is a new unitary authority and wants to equalise council tax levels downwards. UNISON has identified that it will cost £1.6m. A fairer approach would be for the council tax equalisation process to raise the same amount of money. The council thought it was going to get £1m from the New Homes Bonus. In fact it received nearly £1.8m, this and the extra money it will get from 2012 onwards, does not appear to be budgeted for.The council is assuming that it will freeze Council Tax until 2014/15. If Council Tax increased by just 1.5% per annum - less than 32p a week for 66% of council taxpayers - Shropshire would have an extra £5.5m in 2013/14.
UNISON figures show that Shropshire Council has an alternative to sacking 6,500 of its staff and re-hiring them with a pay cut. The Conservative council has sent letters to all 6,500 of its staff saying that they will be dismissed on September 30 and re-hired the next day - if they agree to a 5.4% pay cut and changes to sick pay. Shropshire Council claims it needs to save £76m by 2013/14 and is demanding that £7m is found by workers taking a pay cut of 2.7%, from October 2011, and 2.7%, from October 2012. This is at a time when council workers have had their pay frozen for the last 2 years. The UKs largest union which is currently balloting members on industrial action has revealed an alternative approach the council should use to protect services and workers. Dave Prentis, UNISONs General Secretary, said: The council is letting hardworking council staff and the people who rely on vital local services take a hit with these cuts, when there is a viable alternative. Plans to force staff to accept another huge cut, or lose their jobs, will see many families struggle to put food on the table and keep a roof over their heads.Our plan would save the devastating impact of the pay cut - the council must not press on with plans to cut pay without considering our figures.UNISONs alternative budget for Shropshire: Shropshires council tax income grew by almost £1.3m this year (2011/12) - not because council tax went up but because there were more council taxpayers. However, Shropshire Council is assuming no growth in the taxbase between now and 2014/15.Shropshire is a new unitary authority and wants to equalise council tax levels downwards. UNISON has identified that it will cost £1.6m. A fairer approach would be for the council tax equalisation process to raise the same amount of money. The council thought it was going to get £1m from the New Homes Bonus. In fact it received nearly £1.8m, this and the extra money it will get from 2012 onwards, does not appear to be budgeted for.The council is assuming that it will freeze Council Tax until 2014/15. If Council Tax increased by just 1.5% per annum - less than 32p a week for 66% of council taxpayers - Shropshire would have an extra £5.5m in 2013/14.
Monday, July 11, 2011
11/07/2011
Southampton council cuts pay while piling £4.2m into reserves
Figures released by UNISON today (11 July) reveal that Southampton City Council is claiming it is being forced to impose a pay cut on its workforce due to a lack of resources. At the same time the council is telling the Government it expects to pile more than £4m into its reserves. The council told the Government in March that it expected its reserves to have risen by £4.2m from 1 April 2011, compared with the previous year. Today council workers are striking over plans to sack staff who refuse to accept inferior jobs and pay cuts.According to the statement of accounts, the council added £2.940m to reserves in 2008/9 and £4.533m in 2009/10. A leaked council report shows that the council plans to axe a quarter of the workforce, at an expense to taxpayers of £15m. Hundreds of Southampton workers have taken action over the last six weeks, including refuse collectors and social workers in response to the planned imposition of a pay cut. From today (11 July) port health officers will join the strike. They provide health protection within Southampton Port and Oil refinery, through inspection and certification of cruise liners, containers and oil tankers. Dave Prentis, UNISON’s General Secretary, said:“The council has painted a bleak picture to employees, at the same time as giving the Government figures showing they expect the reserves to rocket. “Pay cuts and job losses will pile misery on to thousands of council workers and their families, at a time of rising inflation. It is clear that these punitive measures are just not necessary.“We are calling for the council to put a stop to these savage cuts.”Every year local authorities are required to provide detailed information to the Department of Communities and Local Government about their budgets, which estimate the levels of their reserves.UNISON has examined the 2010 and 2011 RA returns supplied by Southampton Council, which show:· Estimated unallocated financial reserves increased by £2,326,000· Estimated earmarked other financial reserves increased by £1,870,000When Southampton City Council set its budget this year (2011/12) it was based on the assumption that the unallocated financial reserves were falling – the figures suggets a different picture. (Extract from the 2011/12 Southampton City Council Budget Report - ‘The original revenue estimates for 2010/11 assumed a general draw from balances of just under £3.5m. After reflecting the revised forecast position from Month 9, this draw reduces by £1.1m, to just under £2.4m’.)
Southampton council cuts pay while piling £4.2m into reserves
Figures released by UNISON today (11 July) reveal that Southampton City Council is claiming it is being forced to impose a pay cut on its workforce due to a lack of resources. At the same time the council is telling the Government it expects to pile more than £4m into its reserves. The council told the Government in March that it expected its reserves to have risen by £4.2m from 1 April 2011, compared with the previous year. Today council workers are striking over plans to sack staff who refuse to accept inferior jobs and pay cuts.According to the statement of accounts, the council added £2.940m to reserves in 2008/9 and £4.533m in 2009/10. A leaked council report shows that the council plans to axe a quarter of the workforce, at an expense to taxpayers of £15m. Hundreds of Southampton workers have taken action over the last six weeks, including refuse collectors and social workers in response to the planned imposition of a pay cut. From today (11 July) port health officers will join the strike. They provide health protection within Southampton Port and Oil refinery, through inspection and certification of cruise liners, containers and oil tankers. Dave Prentis, UNISON’s General Secretary, said:“The council has painted a bleak picture to employees, at the same time as giving the Government figures showing they expect the reserves to rocket. “Pay cuts and job losses will pile misery on to thousands of council workers and their families, at a time of rising inflation. It is clear that these punitive measures are just not necessary.“We are calling for the council to put a stop to these savage cuts.”Every year local authorities are required to provide detailed information to the Department of Communities and Local Government about their budgets, which estimate the levels of their reserves.UNISON has examined the 2010 and 2011 RA returns supplied by Southampton Council, which show:· Estimated unallocated financial reserves increased by £2,326,000· Estimated earmarked other financial reserves increased by £1,870,000When Southampton City Council set its budget this year (2011/12) it was based on the assumption that the unallocated financial reserves were falling – the figures suggets a different picture. (Extract from the 2011/12 Southampton City Council Budget Report - ‘The original revenue estimates for 2010/11 assumed a general draw from balances of just under £3.5m. After reflecting the revised forecast position from Month 9, this draw reduces by £1.1m, to just under £2.4m’.)
Wednesday, July 06, 2011
Shropshire council sacks all staff
(06/07/2011) UNISON members in Shropshire are considering balloting for industrial action after the council sent letters to all 6,500 of its staff, sacking them and saying that it will re-hire them - if they agree to a pay cut.The council says that staff who do not agree to the moves will be dismissed without any compensation.The move came after talks between the union and the Conservative council failed to produce any agreement.UNISON spokesman Alan James told the BBC: "We are advising our members to write into the authority refusing the new contracts and do nothing with the proposals which have arrived through the letter box."We have some time on this and I think the authority has gone about this the wrong way."And he continued: "People are scared and intimidated by the tone of the letter and the way it's been delivered by the authority."
(06/07/2011) UNISON members in Shropshire are considering balloting for industrial action after the council sent letters to all 6,500 of its staff, sacking them and saying that it will re-hire them - if they agree to a pay cut.The council says that staff who do not agree to the moves will be dismissed without any compensation.The move came after talks between the union and the Conservative council failed to produce any agreement.UNISON spokesman Alan James told the BBC: "We are advising our members to write into the authority refusing the new contracts and do nothing with the proposals which have arrived through the letter box."We have some time on this and I think the authority has gone about this the wrong way."And he continued: "People are scared and intimidated by the tone of the letter and the way it's been delivered by the authority."
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