Why the unions are right to strike (and why the govt must stand firm)

Ed Miliband was heckled by delegates at this week’s TUC conference after he sparked trade union fury by describing strikes over public sector pension reforms as “a mistake”.

In his first speech to the TUC as the Labour leader, Miliband stood firm on his position despite widespread unhappiness with his criticism of the industrial action on 30 June, when three education unions and one civil servants’ union joined forces in a mass walkout.

Miliband has indeed misjudged the union mood on public sector pensions – an area of the so-called spending ‘cuts’ that has become a red line issue for the labour movement as a whole.

Yet, the union battles we have seen so far are mere skirmishes when compared to the war that lies ahead.

A 9 September deadline to submit plans to make savings in the Local Government Pension Scheme – equivalent of a 3.2% percentage point hike in contribution rates – was scrapped by government at the last minute after unions and employers failed to reach agreement.

Across the public sector in general, trade unions and employers now have until the end of October to deliver “high level” proposals to the government and talks with the Treasury are set to reconvene on 22 September.

Miliband believed the summer strikes over public sector pension reform were wrong as they occurred when talks were still ongoing. He said we needed “meaningful negotiation” to prevent further confrontation over the autumn.

There will be no meaningful negotiation – and talks with the Treasury are unlikely to come to much. Neither the government nor the unions want to cede any ground.

The unions that went on strike over summer understood this – and therefore did the right thing for their members by taking industrial action.

Other public sector unions – including Unison, with its 1 million public sector members – now look likely to declare their intention to ballot their members for strike action in the autumn.

As I have said many times previously, the battle over public sector pensions reform will be both long and bloody.

Should the government lose this fight, then it will have to accept the quality of pensions in the wealth-creating private sector is to remain second class in the future.

And the unions will have to accept that a second round of reform driven by strong public opinion against such reforms could be much harsher than what is on the table now.

Jonathan Stapleton is editor of Professional Pensions

Email him at: jonathan.stapleton@incisivemedia.com

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