STRIKES by three million public sector workers are still planned for later this month over a pension squeeze – despite concessions that the Government described as the “chance of a lifetime”.
Union leaders vowed to press on with a day of action by nurses, teachers, civil servants and others, regardless of significant changes hailed as a big compromise offer by ministers.
Brendan Barber, the TUC general secretary, said there were still “major areas of concern”
– which meant preparations for strike action on November 30 would go ahead.
The Treasury said the offer depended upon cancellation of the strikes, telling MPs: “If agreement cannot be reached, we may need to revisit our proposals.”
The Prime Minister’s official spokesman said: “This is as good as it gets. We want to make sure we have a system which is fair both to public sector workers and to the taxpayer. We think these proposals strike the right balance.”
The revised deal contained two key changes: An eight per cent increase in the accrual rate – the percentage of salary earned as a pension every year – which will be based on one-sixtieth of an average salary, rather than onesixty- fifth; Delaying introduction by seven years until April 2022, so that anyone within ten years of retirement on April 1 next year will not suffer any reduction in their pension pot.
In the Commons, Danny Alexander, the Liberal Democrat Treasury Chief Secretary, urged the unions to embrace “a deal that can endure for at least 25 years and hopefully longer”.
A teacher with a final salary of £37,800 would receive a pension of £25,200 each year, up from the £19,100 they would earn under their current final-salary scheme, he said.
And a nurse, with a final salary of £34,200, would get an annual pension of £22,800 rather than the £17,300 they would have been entitled to under their current deal.
Mr Alexander said: “I hope that, on the basis of this offer, the trade unions will devote their energy to reaching agreement, not on unnecessary and damaging strike action.”
Last night, North- East MPs stepped back from commenting on the continued strike threat.
Tom Blenkinsop, Labour MP for Middlesbrough South and East Cleveland, said: “MPs should allow industrial negotiations to take place without interference or commentary, because people’s financial futures are at stake.”
And Grahame Morris, Labour MP for Easington, said: “I am still looking at the Government’s revised offer. It seems an improved offer for the one million or so public-sector workers who will retire in the next ten years, who will have their pensions protected.
“They are no worse off, but, for millions of others, the bottom line is still pay more and work longer.”
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