· News

Government lays out 'final decision' on public sector pensions

The Government has announced its ‘final decision’ on the future of public sector pensions. Over the three years from 2012, public sector employees will have to pay 3.2% of salary into their retirement pots.

Addressing the House of Commons yesterday, Danny Alexander, chief secretary to the Treasury, said it was the Government's "final position", with the trade unions who now support the outline agreements agreeing not to call any further strikes.

TUC general secretary Brendan Barber said: "Since the day of action (pictured) we have seen a new atmosphere in the negotiations. The state of play varies between sectors.

"Progress has been made in health and local government, where key principles for further negotiation in heads of agreement will provide the basis for further talks in the New Year.

"It is important to stress that no agreements have been reached, but unions now have proposals to put to their executives and members.

"We have reached a stage where the emphasis in most cases is in giving active consideration to the new proposals that have emerged, rather than considering the prospect of further industrial action.

"We have been talking for many months, but since the day of action that involved millions and with the intensive discussions over recent days, we now see change. Accrual rates are more favourable than were originally proposed, there is enhanced protection for those nearing retirement, Fair Deal protection for those whose jobs transfer out of the public sector and there will be no adverse changes to pensions for 25 years."

But Public and Commercial Services Union (PCS) general secretary Mark Serwotka said the Government's "unacceptable bullying" would not deter the union's members.

In a letter to Cabinet Office minister Francis Maude on Monday, Serwotka wrote: "As the union representing the overwhelming majority of civil servants, we want to reach an agreement, but we could not accept that the Government's proposals are an unalterable framework within which any discussions have to take place. PCS would expect to be involved in any further discussions which take place in relation to the Government's proposals."

The union said it has reiterated its commitment to negotiating, but ministers have refused to negotiate on the three core issues of forcing public servants to pay hundreds of pounds more each year in pensions contributions, working for up to eight years longer and receiving "much less" in retirement.

While talks with Cabinet Office officials have been held in recent weeks on aspects of the civil service scheme, the PCS maintains there have been no central negotiations with ministers on these key issues since 2 November.

At a meeting of the TUC's public sector liaison group yesterday evening, Serwotka reported the union's view that nothing had changed since the public sector strike on 30 November, that the offer on the table in the civil service was not good enough, and that further industrial action would be necessary in the new year, if the Government continued to refuse to negotiate on the main issues.

Serwotka said: "It is extraordinary how PCS members have been treated by this Government, simply for saying they will not accept being made to pay more and work longer, for tens of thousands of pounds less in their retirement.

"This kind of unacceptable bullying will not deter union members from standing up for what is right, and opposing the Government's attempts to make them pay the price for a recession they did not cause. We remain committed to negotiating with ministers, but they continue to refuse, even though we believe they have a legal obligation to do so."