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Siu Index
December 2004 No.52
Leaders slam political decisions on pensions

by Chris Bartter

Government proposals that could severely damage the pensions of UNISON members have been roundly criticised by the General Secretary, UNISON's National President and Matt Smith.

Proposals to raise the minimum retirement age across most of the public sector pension schemes, and threaten a move away from a final salary scheme in the NHS, whilst at the same time argue for an increase in the contributions that members have to make, were roundly condemned by Dave Prentis in the Lobby of Parliament on the 16 November.

He pointed out that the proposals would add to the ill-health of public sector workers by forcing them to work longer at stressful jobs, would mean more pensioners depending on benefits and hit recruitment and modernisation in the public sector. He demanded that the Government withdraw or suspend their proposals and sit down with the trade unions.

Matt Smith, pointed out that the effect would be even worse in Scotland. "In Scotland the proportion of the workforce in the public sector is higher than England - rising to almost a third or more in some areas, and average earnings are lower.

"Not only are these proposals a betrayal of government commitments to public service providers, they could also damage the economy in many regions, and the Executive's attempts to increase employment in key services will be under threat."

Pauline Grant, UNISON's National President speaking at the recent Scottish Council, in Glasgow, said that the arguments being put up to justify changes to pension schemes were indefensible "We are told that our pensions have to be cut back because they have become politically indefensible as a result of the crisis of pension provision in the private sector", she said.

"Well, I'll tell you what's indefensible - and it's not the modest pensions provided by the public sector schemes - it is:

· the contribution holidays taken by many employers when the stock exchange profit was high

· the sickening sight of company directors packing their pockets closing schemes and cutting schemes for ordinary workers.

"Two standards - one for the rich, and one for the rest of us", said Pauline.

All speakers called for the start of a major political campaign to defend pensions. "UNISON members will want to know from MPs whether they support UNISON's campaign for a fair deal for pensioners," said Dave Prentis.

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