Public service workers strike over pension reforms

On 30 November 2011, over one million UK public service workers took part in a national 24-hour strike in protest against changes the government has already introduced, and others it wants to make, to public sector occupational pension schemes. Unions and the government disagreed over the impact of the stoppage. Talks between government and union officials are continuing, although unions have questioned ministers’ willingness to negotiate over the proposed changes.

Background

On 30 November 2011, a coordinated 24-hour strike involving members of 30 trade unions took place across the UK to protest against proposed changes to public sector occupational pension schemes.

The coalition government made the proposals in the light of recommendations made in March 2011 by the independent Public Service Pensions Commission, chaired by former Labour Government minister Lord Hutton (UK1103019I). Changes sought by the government include:

• replacing existing final salary schemes with those linking employees’ pension entitlements to their career average earnings;

• raising the age at which pensions are payable;

• raising employee pension contributions.

The government has already switched to using the consumer prices index (CPI) rather than the generally higher retail prices index (RPI) as the basis for inflation-proofing public sector pensions.

The government and the public service trade unions, coordinated by the Trades Union Congress (TUC), have been engaged in talks on the issue for several months. Ministers argue that reform of the various public service pension schemes is ‘inevitable’ in order to ensure their long-term affordability, but that public sector pensions will still be among the best available. The unions stress that the government’s plans mean that public sector workers will have to work longer and pay more for less generous retirement benefits, and insist that any reforms must be the subject of ‘genuine negotiations’.

In June 2011, four trade unions staged one-day strikes over the issue (UK1107019I). Ministers and union leaders subsequently agreed to continue discussions over the proposed changes, with talks taking place at the level of the individual pension schemes affected (UK1108029I) alongside the central discussion process. However, union perceptions of a lack of progress prompted a wider range of public service unions to ballot their members over taking industrial action on the issue, leading to the coordinated ‘day of action’ on 30 November.

Impact of the strike

Unions and the government disagreed over the extent of the stoppage. According to the TUC, the strike was the largest for 30 years. Union sources claimed that up to two million public sector workers, including teachers, health service staff and civil servants, took part in the strike. However, the government sought to question the impact of the industrial action. Ministers disputed the number who actually went on strike; the BBC reported that government estimates put the number involved at ‘close to 1.2 million’.

Cabinet Office Minister Francis Maude described the strike as ‘inappropriate, untimely and irresponsible, especially while talks are continuing’. TUC General Secretary Brendan Barber said:

The government should turn its attention from trying to downplay what was the biggest strike in a generation and get on with serious negotiations where they spell out exactly what they are now proposing in each scheme. Unions want to see a fair, negotiated settlement and are ready for the intensive talks we now need, but those talks need content and that can only come from ministers.

Labour Party Leader Ed Miliband said that the government needed to show flexibility. He urged both sides to return to negotiations to prevent further strike action.

Talks continue

Following the strike, government sources indicated that ministers wanted matters to be resolved by the end of the year, but unions were sceptical about whether this was possible.

Discussions between the government and trade unions over pensions changes resumed the day after the strike. Scheme-specific talks between teaching unions and Department of Education officials took place on 1 December. Health service unions were involved in similar discussions the next day. Christine Blower, General Secretary of the National Union of Teachers (NUT), said:

At the moment we wouldn’t characterise them as 'negotiations'. We would say they’re 'talks'. We hope that they will turn into negotiations.

Court ruling

On 2 December 2011, in a related development, the High Court ruled that the government’s switch to from RPI to CPI as the basis for calculating public sector pensions increases was lawful. Trade unions had sought a judicial review of the move. The TUC expressed disappointment at the outcome of the case, but noted that that the court accepted the argument that the government had done this to cut the UK's financial deficit, rather than carrying out a proper consideration of the best way of measuring the cost of living for pensioners.

Mark Hall, IRRU, University of Warwick