UNISON. Scotland's biggest and liveliest trade union, representing members delivering public and related services.
Thursday, 31 March 2011
UNISON warns of ‘dark future’ for students if university cuts go ahead
UNISON Scotland has condemned planned cuts by Glasgow Caledonian University, claiming students will face a dark future if cuts go ahead.
Take part in the Climate Day Election Debate - 13 April
Take part in the Climate Day Election Debate
Climate Day Election Debate
Wednesday 13th April 7.30 - 9pm
The Scottish elections are coming up fast. UNISON is supporting Stop Climate Chaos Scotland's campaign to keep climate change firmly on the political agenda.
Please take part in the Climate Day Election Debate - it's a fantastic opportunity to ask your questions about climate change to your future politicians from the comfort of your own living room.
The event will be broadcast over the internet starting at 7.30pm. Tune in online to watch the debate and post your questions by email, Facebook or Twitter, for party spokespeople to answer live.
Your involvement will help ensure our future politicians understand just how important tackling climate change is to the people of Scotland.
Register your interest and ask your question today on Facebook or by email to info@stopclimatechaosscotland.org
Find out more www.stopclimatechaos.org/11/mar/climate-day-election-debate
It would be great too if you could 'like' SCCS on Facebook and/or follow us on Twitter.
The SCCS elections online campaign includes short video interviews with party leaders, guest blogs (including a UNISON one on jobs/skills and Just Transition) and Facebook discussions.
Please do get involved. As trade unionists, we know that climate change is an urgent health and safety issue for the planet. Let's play our part in keeping it high up the political agenda.
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Wednesday, 30 March 2011
‘No funding, no future’ says UNISON Scotland as colleges protest against cuts
30 March 2011
No funding – no future’ that’s the message from UNISON Scotland today as college staff across the country take to the streets to protest against the cuts.
Colleges throughout Scotland will take part in a day of action today (Wednesday, March 30) to raise public awareness of the extent of Government’s cuts to further education.
Scotland’s colleges face a 10.4% cut in their funding from the Scottish Funding Council, which will have a devastating impact on staff, students and entire communities.
College bosses have already indicated that this will lead to a loss of courses, a loss of staff and, in turn, a loss of educational opportunities for students.
Karen Dawson, chair of UNISON’s further education committee, said:
“These cuts will have a devastating impact on both colleges and communities and the worst of it is that these are just the tip of the iceberg.
“These cuts will not only destroy our colleges, it will steal the future of an entire generation of students.”
Emma Phillips, regional organiser with UNISON, said:
“The Government must rethink its savage cuts or thousands of Scotland’s students will be left facing a bleak future.
“It is vital that Scotland has an educated and skilled workforce and to achieve this we need to invest in education, not cut it.”
ENDS
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Tuesday, 29 March 2011
UNISON considers legal action over transfer of 300 staff on critical ScottishPower contract
29 March 2011
UNISON, the union for power industry staff, is considering legal action over the proposed transfer this Friday of 300 vital IT staff who provide support to critical IT systems for ScottishPower.
The union has urged ScottishPower and its owners, Spanish conglomerate Iberdrola, to reconsider its shock announcement terminating their IT support contract with major supplier Accenture with effect from Friday 1st April - just 12 months after signing a 10 year deal – and award the contract to IBM without consultation.
Dave Watson, UNISON Scottish Organiser said:
“Not only does this impact on the 307 workers - but the practicalities of transferring the support of critical national infrastructure from one employer to another in just three days could put major systems at risk, threatening the operations of a major national energy supplier.
“UNISON will be taking all necessary steps to urge decision makers to reconsider the timetable for the transfer. We want to ensure that the continuity of energy supply and the future of critical IT support workers are not subject to risk in a contractual spat between suppliers.”
UNISON represents the majority of the 307 workers employed by Accenture to carry out the IT support contract at East Kilbride in Scotland and at Queensferry in North Wales. UNISON reps at both sites expressed astonishment on being told that Accenture has not been granted any extension by ScottishPower to carry out its legal obligations under TUPE to consult the workforce on the transfer to new supplier IBM.
ENDS
Note to editors
ScottishPower, which is owned by Spanish company Iberdrola, signed a 10 year contract with Accenture 12 months ago covering the IT support contract. Around 200 work on this contract at East Kilbride in Scotland and around 100 work at Queensferry in North Wales. In November 2010, a proposal to cut large numbers of staff on the Accenture contract was withdrawn after months of negotiations between trade unions, Accenture, ScottishPower and parent company Iberdrola.
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Monday, 28 March 2011
Dave Prentis speech at 26 March Hyde Park rally
For those who missed it - the powerful call to action of UNISON's General Secretary on video http://www.youtube.com/watch?v=rhKhkkXAIok
Sunday, 27 March 2011
Dangers of privatisation
The Sunday Herald has today published damning evidence of the dangers of handing over public services to private firms.
FoI requests show that the taxpayer is spending £4.8bn for sewage plants that cost £600m to build. And they don't even work properly. They have been plagued by a series of mechanical failures, leaks and bad smells. Their performances have been so poor that Scottish Water has imposed financial penalties totalling £7.5m on PFI operators.
The irony is that these plants are run by the very same multi-national companies who want to take over Scottish Water.
FoI requests show that the taxpayer is spending £4.8bn for sewage plants that cost £600m to build. And they don't even work properly. They have been plagued by a series of mechanical failures, leaks and bad smells. Their performances have been so poor that Scottish Water has imposed financial penalties totalling £7.5m on PFI operators.
The irony is that these plants are run by the very same multi-national companies who want to take over Scottish Water.
Saturday, 26 March 2011
26 March: Together we can achieve anything
Many travelled overnight with trains and buses arriving in London early to join the march. Banners from across Scotlan were part of a ribbon of green and purple that snaked past the iconic sights of London to make one simple point - there is an alternative to cuts and to the smashing of our welfare state.
See an 'on march' report from the unofficial UNISONActive blog here.
See UNISON UK live updates here.
More UNISON Scotland pics at http://www.unison-scotland.org.uk/publicworks/26march2011.html
We're here (most of us)
A host of overnight buses from Scotland have arrived in London for the demo. The trains are nearly here. Check http://www.unison.org.uk/ for live updates throughout the day.
Friday, 25 March 2011
Sea of purple and green to snake through London on Saturday
A carnival atmosphere, with brass bands, dragonfly stilt walkers, 4000 trumpets and tattoos, all decked out in green and purple, will snake its way through London’s streets on Saturday (26 March).
UNISON, the UK’s largest union, will form the biggest group of people marching against the cuts, as tens of thousands of nurses, midwives, social workers, teaching assistants, blood transfusion staff and healthcare assistants make their way from all corners of the country, by train, plane, tube, boat and coach.
From even further afield, union representatives from France, Italy, the Netherlands, Portugal, Spain and Sweden, will show their support for an alternative, fairer global approach to the economic crisis. The union leaders will take part in a round table discussion on Friday (25 March), highlighting the different approaches their countries have taken to the downturn.
The UNISON group will assemble from 11.00 am outside Embankment tube, with the march heading off to Hyde Park at 12 o’clock midday. UNISON, at the front of the trade union section, will be lead by giant purple inflatable’s and national banners.
Dave Prentis, UNISON General Secretary, said:
“Marching to the sound of a choir, brass bands, drummers, trumpets, rattles and whistles, a sea of purple and green ponchos, hats, t-shirts and flags will make its way through London on Saturday.
“Millions of lives have already, or will shortly be, touched by the Tory’s reckless plans. Tens of thousands of dedicated public service workers will vote with their feet, marching with family and friends to show their support for an alternative economic approach.
“We know the government has other choices – but the Tories are ideologically wedded to cutting back on vital local services and public sector jobs. This is not only a disaster strategy for our society – it is already hitting our chances of recovery. Instead of making cuts that close children’s centres, connexions offices and cut hospital beds, the Tory-led coalition should impose a Robin Hood Tax on banks, and make taxation fairer.”
Why UNISON members are marching
The Government’s own forecasts expect a total of 330,000 public service jobs to go because of the cuts – some economists estimate the toll will be much higher. This includes 50,000 job cuts from NHS trusts in England, and 140,000 jobs from councils in England.
Not only will this destroy our society, with vital services that provide a safety net for the poor, the sick and the vulnerable closing down, it will wreak havoc on our economy – hitting our chances of recovery.
At 2.5m unemployment is already at a 17 year high, and will keep on rising, inflation has hit a two-year high, and business and consumer confidence are already low. We do not accept the government’s mantra that cuts are the only way – this is a political choice and there is an alternative.
Instead of making cuts that are stretching the gap between the rich and poor, the government should use taxation and measures against the banks, including a Robin Hood tax, to spread the burden of the crisis, fairly.
Keeping up public spending on vital services would help us to recover from the recession, and help communities to pick up the pieces.
UNISON UK Press release 25 March 2011
http://www.unison.org.uk/asppresspack/pressrelease_view.asp?id=2235
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Thursday, 24 March 2011
Pensions rip off
The Pensions Increase Order has been laid before the UK Parliament. This confirms that public service pensions will increase by 3.1%, in line with the Consumer Price Index (CPI), as at last September.
If the increase had been in line with the Retail Price Increase (RPI), as it has traditionally been, pensioners would have had an increase of 4.6%.
At a stroke of the pen the UK Government has just robbed public service pensioners of 1.5% of their pension at a time when real inflation is over 5%, VAT going up etc.
If the increase had been in line with the Retail Price Increase (RPI), as it has traditionally been, pensioners would have had an increase of 4.6%.
At a stroke of the pen the UK Government has just robbed public service pensioners of 1.5% of their pension at a time when real inflation is over 5%, VAT going up etc.
Wednesday, 23 March 2011
Tax cuts for rich businesses isn’t much of a strategy – UNISON Scotland budget response
UNISON Scotland has slammed Osborne’s decision to cut corporation tax for rich businesses, claiming the focus should be on collecting taxes not cutting them.
The union branded Osborne’s ‘no budge budget’ as a missed opportunity to right Tory economic wrongs.
By passing up the chance to scale back the savage public spending cuts, the Tories are condemning the economy to long-term low growth and high unemployment.
UNISON’s Scottish Secretary, Mike Kirby, said: “Tax cuts for rich businesses that don’t pay their taxes at the moment isn’t much of a strategy.
“Each year, billions of pounds are lost to the economy due to tax avoidance by rich businesses. Our members already pay their taxes through PAYE and the Chancellor should be focussing on collecting the taxes of those who don’t.
“In order to build a fairer, more sustainable society we need fair taxation and tough measures in place to combat tax avoidance. However, this budget will see the most vulnerable in our society paying the price for the bankers’ mistakes as they watch the public services they rely on disappear.”
UNISON is calling for a change of direction and a budget for growth including a Robin Hood Tax. This tax on the banks would add £20 billion to the public purse – twenty times the measures the Chancellor announced today to close tax loopholes.
Twenty billion would save local services from shut down, keep children’s nurseries open, stop hospital’s shedding jobs and save adult day centres from closure.
ENDS
Notes to editors
1.UNISON is Scotland’s largest union. For more information on our campaign to protect public services visit: www.unison-scotland.org.uk/publicworks .
The union branded Osborne’s ‘no budge budget’ as a missed opportunity to right Tory economic wrongs.
By passing up the chance to scale back the savage public spending cuts, the Tories are condemning the economy to long-term low growth and high unemployment.
UNISON’s Scottish Secretary, Mike Kirby, said: “Tax cuts for rich businesses that don’t pay their taxes at the moment isn’t much of a strategy.
“Each year, billions of pounds are lost to the economy due to tax avoidance by rich businesses. Our members already pay their taxes through PAYE and the Chancellor should be focussing on collecting the taxes of those who don’t.
“In order to build a fairer, more sustainable society we need fair taxation and tough measures in place to combat tax avoidance. However, this budget will see the most vulnerable in our society paying the price for the bankers’ mistakes as they watch the public services they rely on disappear.”
UNISON is calling for a change of direction and a budget for growth including a Robin Hood Tax. This tax on the banks would add £20 billion to the public purse – twenty times the measures the Chancellor announced today to close tax loopholes.
Twenty billion would save local services from shut down, keep children’s nurseries open, stop hospital’s shedding jobs and save adult day centres from closure.
ENDS
Notes to editors
1.UNISON is Scotland’s largest union. For more information on our campaign to protect public services visit: www.unison-scotland.org.uk/publicworks .
Tuesday, 22 March 2011
World Water Day - EPSU calls for implementation of UN resolution
On World Water Day, 22 March 2011, the European Federation of Public Services Unions (EPSU) calls on the European Union and Member States to implement the United Nations resolution on the Right to Water and Sanitation without delay.
The UN General Assembly voted on 28 July 2010 for this resolution which declares that access to water and sanitation services is a fundamental human right. Although this resolution has no binding authority, it expresses global consensus. Shamefully several EU Member States abstained. That is why EPSU calls upon the EU again to put in place this right for Europe’s citizens.
It is imperative that governments dedicate the necessary resources to ensure universal access to water and sanitation at an affordable price. Most governments can afford to do this, yet choose not to. This is a political problem, not a market problem. It is up to workers and trade unions, in alliance with civil society and other progressive forces to impose the necessary political pressure.
EPSU repeats its support for the European Parliament declaration to keep the management of water resources not subject to internal market rules. It also states its support for public ownership and management of water and water utilities. Privatisation has induced inequalities and exclusion and has often led to steep water-rate hikes, water-service disruptions and unaccountable management. A recent trend is a return to public management of water services. Local governments’ awareness of market failures in public services is increasing.
We believe that water and sanitation services are a fundamental responsibility of governments and must not be outsourced for private profit. These are essential Quality Public Services that our families and communities depend on. Water is life.
The UN General Assembly voted on 28 July 2010 for this resolution which declares that access to water and sanitation services is a fundamental human right. Although this resolution has no binding authority, it expresses global consensus. Shamefully several EU Member States abstained. That is why EPSU calls upon the EU again to put in place this right for Europe’s citizens.
It is imperative that governments dedicate the necessary resources to ensure universal access to water and sanitation at an affordable price. Most governments can afford to do this, yet choose not to. This is a political problem, not a market problem. It is up to workers and trade unions, in alliance with civil society and other progressive forces to impose the necessary political pressure.
EPSU repeats its support for the European Parliament declaration to keep the management of water resources not subject to internal market rules. It also states its support for public ownership and management of water and water utilities. Privatisation has induced inequalities and exclusion and has often led to steep water-rate hikes, water-service disruptions and unaccountable management. A recent trend is a return to public management of water services. Local governments’ awareness of market failures in public services is increasing.
We believe that water and sanitation services are a fundamental responsibility of governments and must not be outsourced for private profit. These are essential Quality Public Services that our families and communities depend on. Water is life.
Monday, 21 March 2011
UNISON launches safety guide for social workers
The guide has been written by social workers for social workers and examines some of the key issues faced by staff in their day-to-day working lives.
The launch, organised by UNISON Scotland in conjunction with the Scottish Association of Social Workers (SASW), will include a presentation on the new guide and the principles behind it.
Kate Ramsden, a member of UNISON’s Social Work Issues Group, said: “There is no doubt that social work staff work in an increasingly difficult climate with rising demands not always matched with an increase in available resources. This group of staff are constantly overstretched and this can lead to stress, ill-health and burnout.
“This guide aims to help social work practitioners to keep themselves safe in the workplace; to recognise when they are becoming stressed or overloaded, and how to seek the necessary help from their employer or trade union.”
Stephen Smellie, chair of UNISON’s Social Work Issues Group, said: “People are essential to the quality of service provided and it is vital that we support the staff who deliver services. We need to ensure they are trained, supported and properly resourced in order to undertake the often difficult tasks required by our service users.”
ENDS
Notes for editors
1. Photo opportunity You are invited to send a reporter, photographer and/or crew to the Keeping Safe in the Workplace launch. It will be held on Monday, March 21, at 10.30am at Discovery Point, Discovery Quay, Dundee (www.rrsdiscovery.com for location details.)
2. UNISON is Scotland’s largest union representing social workers and social care staff. We represent staff in all areas including residential workers, social care workers, occupational therapists, home care staff and professional, admin and clerical support staff. See www.unison-scotland.org.uk/socialwork
3. Click here for a PDF of the Keeping Safe in the Workplace guide
4. For further information contact Mandy McDowall, regional organiser for UNISON, on 0141 342 2804 or 07903 846 427. For further information on UNISON visit our website at http://www.unison-scotland.org.uk/
‘Just Transition’ is key part of climate election campaign
UNISON Scotland has a guest blog featuring ‘Just Transition’ on the Stop Climate Chaos Scotland elections online website this week.
Fiona Montgomery, from the Policy & Information team, is highlighting the Just Transition ‘ask’ in the SCCS 2011 election manifesto.
Just Transition policies aim to ensure that the costs and benefits of switching to a low carbon economy are shared equally across society.
The blog is part of the SCCS elections online campaign which also features the Climate Day Election Debate at 7.30pm on Wednesday 13 April. Do show your support by 'liking' this on Facebook and taking part in the blog debates there or following SCCS on Twitter.
Trade unionists, environment groups and others around the world have helped make Just Transition part of the negotiating text during United Nations climate change talks in recent years.
The STUC built it into the climate change communiqué that it agreed with the Scottish Government in 2009.
For more information on Just Transition, see the TUC Touchstone publication A Green and Fair Future.
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Tuesday, 15 March 2011
UNISON extends sympathy to Japanese people
UNISON has sent condolences to sister unions in Japan following the devastating earthquake and tsunami that hit the country last Friday.
Offering "whatever assistance we can", UNISON general secretary Dave Prentis said: "It is at times like these that the importance and value of public service workers is brought most sharply into focus.
"In rescuing the victims, in treating the injured, in restoring essential services and in comforting those affected, it is the members that public service unions represent who are at the forefront, putting aside their own concerns and needs in order to help others."
You can read the full letter from UNISON to JICHIRO
here.Similar letters have been sent to other sister unions, including ZENSUIDO, JHCWU, ZENSHOUKYO, JPSU and TOSHIKO
From UNISON UK News:
http://www.unison.org.uk/news/news_view.asp?did=6668
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Thursday, 10 March 2011
UK Government will use Hutton report to raid public sector pensions
UNISON chief, Dave Prentis, is warning that the UK Government will use today’s Hutton report as a Trojan horse to raid the pensions of millions of public sector workers. The union is sending out a message to its 1.4m members
warning that industrial action is now one step closer.
Dave Prentis, said:
“Whatever the Hutton report may say about fairness, the Government will use
it as a Trojan horse to raid the pensions of hard working public sector
workers. Pensions that our members have paid into year in year out and
which are fair and affordable.
“In fact, even before the report today, the Government announced they were
increasing employee contributions by 50%.
“There is a lot of nonsense talked about public sector pensions – they are
not gold plated. The average is very low - in local government, the average
is just over £4,000, falling to £2,800 for women.
“Asking workers to work longer for less is simply not an option. We want to
talk to the Government about their response as a matter of urgency. But I
am sending out a clear message to our 1.4 million members warning them that
industrial action is now one big step closer."
There is a lot of misinformation about public sector pension schemes. The
facts are:
* The local government and NHS pension schemes were renegotiated in 2006
to make them sustainable and affordable.
* Both schemes are cash rich – more is going in than coming out.
* Last year, the NHS scheme received £2billion more in contributions than it
paid out and this money went straight to the Treasury.
* The average pension in public service pension schemes is very low, for
example in local government, the average is just over £4,000, falling to
£2,800 for women.
* If these people didn’t save for their retirement, they would have to rely
on *means-tested benefits paid for by the taxpayer.
* Pensioners are already being hit with the move from RPI to CPI to
calculate annual inflation increases - this will reduce their value by 15%.
* When the NHS scheme was renegotiated, protection was built in for current
members to retain their retirement age of 60. New members have a retirement
age of 65. If that agreement is broken, industrial action could follow.
* Government cuts to local government employers grants mean that the
shortfall in pension contributions has to be made up by employees. They may
have to pay between 50% and 100% more for a reduced pension. This is
effectively a tax on low paid workers.
* Studies have shown that if the contributions rise too much, workers will
desert the local government scheme and it could collapse.
* The local government scheme invests more than £100billion in the UK
economy. If the scheme collapsed, it would have a devastating impact on the
economy.
warning that industrial action is now one step closer.
Dave Prentis, said:
“Whatever the Hutton report may say about fairness, the Government will use
it as a Trojan horse to raid the pensions of hard working public sector
workers. Pensions that our members have paid into year in year out and
which are fair and affordable.
“In fact, even before the report today, the Government announced they were
increasing employee contributions by 50%.
“There is a lot of nonsense talked about public sector pensions – they are
not gold plated. The average is very low - in local government, the average
is just over £4,000, falling to £2,800 for women.
“Asking workers to work longer for less is simply not an option. We want to
talk to the Government about their response as a matter of urgency. But I
am sending out a clear message to our 1.4 million members warning them that
industrial action is now one big step closer."
There is a lot of misinformation about public sector pension schemes. The
facts are:
* The local government and NHS pension schemes were renegotiated in 2006
to make them sustainable and affordable.
* Both schemes are cash rich – more is going in than coming out.
* Last year, the NHS scheme received £2billion more in contributions than it
paid out and this money went straight to the Treasury.
* The average pension in public service pension schemes is very low, for
example in local government, the average is just over £4,000, falling to
£2,800 for women.
* If these people didn’t save for their retirement, they would have to rely
on *means-tested benefits paid for by the taxpayer.
* Pensioners are already being hit with the move from RPI to CPI to
calculate annual inflation increases - this will reduce their value by 15%.
* When the NHS scheme was renegotiated, protection was built in for current
members to retain their retirement age of 60. New members have a retirement
age of 65. If that agreement is broken, industrial action could follow.
* Government cuts to local government employers grants mean that the
shortfall in pension contributions has to be made up by employees. They may
have to pay between 50% and 100% more for a reduced pension. This is
effectively a tax on low paid workers.
* Studies have shown that if the contributions rise too much, workers will
desert the local government scheme and it could collapse.
* The local government scheme invests more than £100billion in the UK
economy. If the scheme collapsed, it would have a devastating impact on the
economy.
Hutton pensions report brings industrial action closer
UNISON, the UK’s largest union today warned that the Hutton report will bring the threat of industrial action closer, as the union’s members reel from pay freezes and job cuts.
Once again, the UK Government is expecting public sector workers to pay the price of the excesses of the bankers who caused the deficit, said the union’s general secretary Dave Prentis.
And he called on the Government to enter into urgent, meaningful talks on the substance of the Hutton report, rather than rushing to make cuts.
Dave Prentis said:
“This will be just one more attack on innocent public sector workers who are being expected to pay the price of the deficit, while the bankers who caused it continue to enjoy bumper pay and bonuses.
“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.
“One million of our members are in these pension schemes and I urge the Government to enter into urgent, meaningful talks on the report, rather than rushing to make cuts.
“Workers are already losing out as a result of the Government pre-empting the report, raiding the pension schemes and increasing contributions by 50%.”
There is a lot of misinformation about public sector pension schemes. The facts are:
• The local government and NHS pension schemes were renegotiated in 2006 to make them sustainable and affordable.
• Both schemes are cash rich – more is going in than coming out.
• Last year, the NHS scheme received £2billion more in contributions than it paid out and this money went straight to the Treasury.
• The average pension in public service pension schemes is very low, for example in local government, the average is just over £4,000, falling to £2,800 for women.
• If these people didn’t save for their retirement, they would have to rely on *means-tested benefits paid for by the taxpayer.
• Pensioners are already being hit with the move from RPI to CPI to calculate annual inflation increases - this will reduce their value by 15%.
• When the NHS scheme was renegotiated, protection was built in for current members to retain their retirement age of 60. New members have a retirement age of 65. If that agreement is broken, industrial action could follow.
• Government cuts to local government employers grants mean that the shortfall in pension contributions has to be made up by employees. They may have to pay between 50% and 100% more for the same pension. This is effectively a tax on low paid workers.
• Studies have shown that if the contributions rise too much, workers will desert the scheme and it could collapse.
• The local government scheme invests more than £100billion in the UK economy. If the scheme collapsed, it would have a devastating impact on the economy.
Once again, the UK Government is expecting public sector workers to pay the price of the excesses of the bankers who caused the deficit, said the union’s general secretary Dave Prentis.
And he called on the Government to enter into urgent, meaningful talks on the substance of the Hutton report, rather than rushing to make cuts.
Dave Prentis said:
“This will be just one more attack on innocent public sector workers who are being expected to pay the price of the deficit, while the bankers who caused it continue to enjoy bumper pay and bonuses.
“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.
“One million of our members are in these pension schemes and I urge the Government to enter into urgent, meaningful talks on the report, rather than rushing to make cuts.
“Workers are already losing out as a result of the Government pre-empting the report, raiding the pension schemes and increasing contributions by 50%.”
There is a lot of misinformation about public sector pension schemes. The facts are:
• The local government and NHS pension schemes were renegotiated in 2006 to make them sustainable and affordable.
• Both schemes are cash rich – more is going in than coming out.
• Last year, the NHS scheme received £2billion more in contributions than it paid out and this money went straight to the Treasury.
• The average pension in public service pension schemes is very low, for example in local government, the average is just over £4,000, falling to £2,800 for women.
• If these people didn’t save for their retirement, they would have to rely on *means-tested benefits paid for by the taxpayer.
• Pensioners are already being hit with the move from RPI to CPI to calculate annual inflation increases - this will reduce their value by 15%.
• When the NHS scheme was renegotiated, protection was built in for current members to retain their retirement age of 60. New members have a retirement age of 65. If that agreement is broken, industrial action could follow.
• Government cuts to local government employers grants mean that the shortfall in pension contributions has to be made up by employees. They may have to pay between 50% and 100% more for the same pension. This is effectively a tax on low paid workers.
• Studies have shown that if the contributions rise too much, workers will desert the scheme and it could collapse.
• The local government scheme invests more than £100billion in the UK economy. If the scheme collapsed, it would have a devastating impact on the economy.
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