Civil servants reject Treasury bid to scupper pension talks

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Civil servants reject Treasury bid to scupper pension talks

Delegates representing 35,000 professional civil servants have accused the Treasury of trying to scupper negotiations with trade unions on reforms to civil service pensions.

At their biennial conference in Bristol, 140 delegates reacted angrily to statements by Treasury Secretary Danny Alexander that the government was determined to impose a higher pension age and higher contributions on civil servants.

But Prospect’s Deputy General Secretary Dai Hudd said he had been assured by Cabinet Office Minister Francis Maude that the government was “serious” about negotiating changes and that he would extend the timetable for talks into July.

“This is a genuine consultation, to which the government is committed to try to agree a way forward,” Maude said in a statement to Prospect delegates.

Delegates went on to back motions calling for every effort to be made to seek an acceptable outcome in the talks. “But let me make clear that if the talks fail we will have no hesitation in recommending industrial action in a ballot of members,” said Hudd. “This is not a course of action I want to see. But to judge by this morning’s performance it appears to be the outcome the Treasury wants.”

Hudd said there was still a 35:65 chance that the talks could succeed so long as ministers were prepared to recognise that a range of factors was about to kick in that would reduce the cost of public service pensions. These included very low pay rises, people retiring later than age 60, and the impact of the uprating switch from RPI to CPI.

His stance won united backing from speakers in the debate from the Ministry of Defence, Defra, Natural Environment Research Council, British Library, Ordnance Survey, Health and Safety Executive, Valuation Office Agency and other bodies.

The full text of Francis Maude’s statement to Prospect is as follows:

“Despite this morning's media coverage, I want to assure all public sector workers that discussions with the unions are ongoing. The next meeting with the TUC is at the end of June with a further meeting in July being arranged. The talks around pension reform are being taken seriously by the government and no decisions have been taken. This is a genuine consultation, to which the government is committed to try to agree a way forward.”