Pension reforms ‘will spark strikes in public sector’

Labour peer Lord Hutton sparked anger after recommending to ministers that public sector workers should be stripped of their final salary pensions and instead have schemes linked to average earnings, while paying more and working longer.

Unions representing council workers, NHS staff, civil servants and other public sector employees reacted with fury to the report and warned of co-ordinated industrial action.

Brian Strutton, national officer of the GMB, said “Lord Hutton had a real chance to make sure low paid public sector workers have good quality, affordable pension schemes, but in failing to address the key issue of affordability to members, that chance has been wasted.

“Many of his conclusions are questionable and will infuriate public sector workers. It’s not cogent enough to be a blueprint for reform but it might well light the blue touch paper for industrial action.”

Jon Skewes of the Royal College of Midwives said members would be “appalled” by the Government’s “attack” on their pensions.

“On top of pay freezes, cuts to services and threats to the NHS itself, this will be seen as a slap in the face for hard-pressed midwives and maternity support workers. They will react with anger and dismay and many may vote with their feet and leave the NHS. This will only serve to exacerbate the current and critical shortage of midwives and have a negative effect on the care women and babies receive,” he warned.

Rail Maritime and Transport union leader Bob Crow said the report will be “the spark that lights the blue touch paper of co-ordinated strike action”, adding: “We have seen this week that gold-plated bonuses and pensions for the bankers and speculators who caused this crisis are still the order of the day while those slogging their guts out making this country tick are lined up for a kicking by Lord Hutton and the ConDems.

“It is crystal clear from the Hutton Review that, from nurses to transport staff, the Government intend to make staff work longer, pay more and get less. There is no question that this is the issue where co-ordinated strike action is on the cards as we fight to stop the ConDem pensions robbery.”

TUC general secretary Brendan Barber said: “Public sector workers are already suffering a wage freeze, job losses and high inflation. They are now desperately worried that they will no longer be able to afford their pension contributions, and will have to opt out.

“Even without any changes recommended in today’s report, public sector pensions have been reduced in value by 25% by a mix of negotiated change and the Government’s arbitrary switch to the CPI measure of inflation.

“On top of this the Government has announced a £2.8 billion increase in contributions and a review of the discount rate that could also increase contributions. Even without further changes public sector workers will pay much more for substantially less.”

Unite assistant general secretary Gail Cartmail said: “Warm words on protecting the low paid is little comfort to the largely female workforce in the schemes - especially in local government.

“Hutton says there’s a limit to the amount people will save via pension contributions. However, many women are voting with their feet, opting out of pension contributions and thereby ensuring pension poverty in the future.

“The fear is that Lord Hutton’s report will be cherry-picked by ministers for those recommendations that dovetail with their menu of radical measures that will hit the living standards of not very well-paid public employees extremely hard in their retirement. Recommendations that could be favourable to employees will be simply discarded.”

Dave Prentis, general secretary of Unison, said the Government was treating Lord Hutton’s report with “contempt” and had already decided to increase pension contributions.

“On top of a pay freeze, and the threat of redundancy, they now face a pensions raid. This brings the threat of industrial action closer,” he warned.

Steve Gillan, general secretary of the Prison Officers Association, said: “My members will be watching very closely what this Government do next in relation to the Hutton recommendations.

“My members will protect their pensions. If it is the will of my members, I will not rule out industrial action up to and including strike action, and any action could be co-ordinated with other unions.”

The Fire Brigades Union (FBU) branded Lord Hutton’s recommendations as “blatant daylight robbery” - unfair to both firefighters and the public.

FBU general secretary Matt Wrack said: “This is the great pensions robbery and is completely unacceptable to firefighters across the UK.

“Expecting firefighters to work until they are 60 is wrong. Firefighting is a physically arduous job. Peak fitness is essential where seconds can cost lives. The public will not want an ageing frontline fire and rescue service.”