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Pension deal 'could be withdrawn'


Unison members on strike in Glasgow (6/9/11)Members of many trade unions are set to take industrial action on Wednesday

The government has warned unions that an improved offer on public sector pensions could be withdrawn if an agreement is not reached.

Chief Secretary to the Treasury Danny Alexander, in the Guardian, also urged union leaders to persuade their members to accept the "generous" offer tabled.

It comes as more than two million workers are set to strike on Wednesday over changes to public sector pensions.

Teachers and border control staff are among those expected to strike.

Unions say proposals which require their members to work longer before collecting their pension and contribute more are unfair.

The government says change is needed to keep down the cost to the taxpayer, because people are living longer.

'Harden opinions'

Mr Alexander told the Guardian the strike action was "a distraction" to the ongoing negotiations and "a risk to it" because "part of going on strike will harden opinions on the union side and might make it harder for them to sell a deal to their members".

"I think we've got the basis of an agreement that is a pretty good deal for both sides," he said.

"I believe that many unions I talk to are serious and sincere about their desire to reach an agreement, but they are obviously going to have to persuade their own members who they've marched up this hill that in fact the agreement and the nature of the deal on offer is a good one."

The minister warned that two changes to the offer being put forward by the government - enhanced accrual rates for the new pension schemes and protection from pension changes for anyone within 10 years of retirement - could be withdrawn.

Mr Alexander told the Guardian: "I reserve the right to take those enhancements off the table if an agreement can't be reached.

"I don't want to do that. I don't want to be in that position. I want to be in a position where we have got an agreement."

BBC political correspondent Ben Wright reports that a senior trade union negotiator, responding to Mr Alexander's comments, said they wanted to "get Wednesday's strike out of the way, meet ministers quickly, knock heads together and try to get a deal done by the end of the year".

Mr Alexander has been leading negotiations on behalf of the government alongside Cabinet Office Minister Francis Maude.

'Perverse incentive'

Mr Maude told the Daily Telegraph there was a case for changing the law to make striking more difficult.

Under current legislation, once a union has voted to strike a walkout must take place within 28 days or a new ballot must be held. However, if a strike is held the union then has a legal right to take part in more industrial action until the dispute is resolved.

Mr Maude told the Telegraph the rule gives trade unions a "perverse incentive" to strike.

He suggests there is a case for changing the law to make unions hold a new ballot every few months.

"There is a case for change. We'll want to look at this carefully," he said.

Chief Secretary to the Treasury Danny AlexanderDanny Alexander said he felt the government's offer was "pretty good" for both sides

Lucy Morton, deputy general secretary of the Immigration Services Union, said she regretted its members were striking.

"This union hasn't taken industrial action at all in its 28-year history. This is something our members feel deeply and desperately strongly about, but nonetheless it's no-one's wish to disrupt the border, or to cause chaos to the travelling public.

"It's the only way we have left to get the government to hear us."

Meanwhile, Heathrow airport has asked airlines to halve the number of passengers they fly into the airport next week to try to minimise disruption caused by a strike.

Its operator, BAA, warned of "gridlock" and said passengers could face 12-hour delays on Wednesday when immigration officers go on strike over pensions.

Hospital managers are planning to postpone thousands of non-emergency operations next Wednesday and patients across the UK have been sent letters warning them of the disruption.



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