Unite, which represents more than 250,000 public-service workers, claims a coalition of vested interests has already decided that public- sector pensions should be reduced, and has created a climate of ‘hysteria’ designed to manipulate the facts to make the case for this.
In its evidence submitted to the Hutton commission of public-sector pensions, the union argued that Government is uniquely placed to provide pensions for its employees at a much lower cost than is possible for private-sector employers.
The union argues public-service pensions are being funded in a controlled and responsible manner and the agreed ‘cap and share’ framework provides a basis that will ensure that scheme costs are sustainable in the face of rising costs.
Unite claims the imposition of a change in indexation to the Consumer Price Index (CPI), which can be construed as pre-judging the commission’s findings, is in breach of understandings surrounding cost-sharing, as also would be the imposition of any across-the-board contribution increase. It claims public-service pensions are proportional to pay and earned by service and so higher pensions reflect not gold-plating but a just reward for a long career in public service.
The commission, headed by the former Labour minister, John Hutton, is due to make an interim report in September, with the review’s full proposals by the time of the 2011 budget.
Unite’s joint general secretary, Derek Simpson, said: "We are pleased to be able to present a defence of public-service pension provision, which Unite is doing against a lynch mob mentality by a coalition of vested interests – government, the media, so-called ‘experts’ and private-sector employers – wishing to reduce public-sector pensions.
"There is a climate of hysteria being generated, with facts being manipulated to fit a pre-judged case. This unholy alliance, embracing CBI leaders and Nick Clegg, already have good pension nest eggs, which the average private and public-sector employee can only dream about.
"Last year, the TUC said the majority of public-sector pensioners received a pension of less than £5,000 a year and that half the women on NHS pensions receive less than £3,500 annually. We are not talking about great riches here."
And he added: "This review will potentially affect the livelihoods of many millions of past and present public-service employees and their views as members need to be properly considered, alongside those of taxpayers’ in general. It is unfortunate that in relation to pension debates that members’ interests are very rarely given due consideration."
