Major union rejects offer on public sector pensions

The Public and Commercial Services union (PCS) said “nothing had changed” since last month’s day of action, when up to two million workers went on strike in protest at the planned pension reforms, and raised the threat of further strikes.

But other unions took a different view yesterday, agreeing to take the Government’s final offer back to their executives next month.

A Cabinet Office source said the PCS would not be invited to any further discussions to agree final details of the civil service pension reforms, sparking union complaints the Government was “bullying” its staff.

Prospect, the second largest civil service union, said it was giving a green light to further negotiations and was ruling out industrial action while they were under way.

Unison confirmed it had received a final offer from the Government on NHS pensions, and agreed to take it back to its health service executive, raising hopes of a breakthrough.

Other health unions will discuss the latest offer in the new year, leaving executive committees to decide whether to accept, reject, or formally consult NHS members on the proposals.

Christina McAnea, Unison’s head of health, said: “On some issues, such as contribution rates for the low-paid next year, and for people close to retirement, we have made progress. On others, we always knew this would be a damage-limitation exercise aimed at reducing the worst impacts of the Government’s pension changes.”

Downing Street said it was “hopeful of making some progress” and confirmed that Danny Alexander, Chief Secretary to the Treasury, would make a statement to the Commons today.

The Prime Minister’s official spokesman said: “We have always said we wanted to reach an agreement by the end of the year. We remain hopeful that can be done. The Chief Secretary has said he retains the right to take that deal off the table.”

Prospect’s deputy leader, Dai Hudd, said it had taken almost a year of talks to obtain a formal offer from the Government.

Prospect said that among the improvements in the new offer were a faster accrual rate for employees, a floor below which the employer’s contributions would not drop, further negotiations on the increase in contributions and extension and improvement of Fair Deal pensions protection for workers transferred out of the public sector.

Talks were held all day on the two other schemes, covering teachers and local government workers.

PCS general secretary Mark Serwotka said: “We continue to oppose the Government’s attempt to force public servants to pay more and work longer for less.