The agreement was widely reported as a retreat by the administration. “The government has capitulated to the threat of public sector strikes,” said Digby Jones, director general of the Confederation of British Industry, the main employers’ organization, in reference to threats by the Trades Union Congress at its September conference to organize widespread union action this winter.

The government had been seeking to introduce a higher retirement age beginning in 2013. Instead, they plan for new workers to pay extra in order to retire at 60. The General, Municipal and Boilermakers (GMB) union has said it will campaign against this two-tier move.

Employers expressed dissatisfaction. “On the one hand we have the private sector workforce being told it must work longer and put more money into their own pension pot, but here we have the public sector workforce who can still retire at 60,” said David Frost, director of the British Chamber of Commerce.

Union actions against company attempts to end the linking of pension levels to a worker’s salary at the time of retirement have made some progress recently. A one-day strike on September 23 at Grampian Country Foods Haverhill plant, for example, around this issue led to renewed talks between the unions and company. Whilst still ending the final salary scheme, the company, one of the largest meat producers in the United Kingdom, has conceded increasing its contributions to a new pension scheme. “It’s not all we wanted but still a significant move and a product of the action taken,” said Scott Walker, Transport and General Workers’ Union shop steward at Grampian’s plant at Cambuslang, Glasgow. A further part of Grampian’s agreement with the unions was to concede it will negotiate an early retirement programme.

Meanwhile, government minister David Blunkett on October 10 described the current disability benefits system as “crackers.” Some 2.7 million people currently claim benefits under this program. The government is seeking to reduce this by 1 million. Alleging that many disability claims are fraudulent, Blunkett said, “If people re-associate with the world of work, suddenly they come alive again. That will overcome depression and stress.”
 
 
Related article:
How workers won socialized medicine in the UK  
 
 
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