People's Democracy

Britain: Biggest Strike in 100 Years

THE government’s note on the PFRDA bill gave examples about how western countries are implementing the so-called pension reform. The following report by Polly Curtis about the UK government employees’ strike, published in The Guardian on Saturday, June 18, 2011, brings out the truth of the government’s contention. 

The leader of the largest public sector union promises to mount the most sustained campaign of industrial action the country has seen since the general strike of 1926, vowing not to back down until the government has dropped its controversial pension changes. Dave Prentis, general secretary of Unison --- which has 14 million members employed by the state --- described plans for waves of strike action, with public services shut down on a daily basis, rolling from one region to the next and from sector to sector.

There was growing anger over a public sector pay freeze that could trigger more disputes further down the line and that the changes would unfairly penalise women, who form the majority of low-paid public sector workers. "It will be the biggest since the general strike. It won't be the miners' strike. We are going to win.”

But the prospect of a resolution looks increasingly remote after the government unilaterally set out details of the new public sector pension scheme on Friday, pre-empting the conclusion of the talks. The general secretary of the TUG called the move “'deeply Inflammatory." "I strongly believe that one day of industrial action will not change anyone's mind in government. We want to move towards a settlement. The purpose of industrial action is not industrial action, it is to get an agreement that is acceptable and long-lasting. But we are prepared for rolling action over an indefinite period. This coalition has got to open its eyes and see that in just reacting to a Daily Mail view of the public sector they are walking into a trap of their own making.” 

The government has confirmed that it will raise pension contributions by 3.2 percentage points, increase the retirement age to 66 and move to a career average scheme to replace the more generous final salary version. Ministers argue it is unfair for other taxpayers to pay for more generous schemes for public employees than they might get in the private sector. The unions say it amounts to an additional tax on public sector workers, with their additional contributions - a de facto pay cut - being used to reduce the deficit rather than fund pensions. It comes on top of job cuts, a pay freeze and controversial plans such as those for the NHS.

Prentis said that while pensions were the focus of the unions' industrial dispute --- and the only issue that they could legally jointly strike on --- his members were equally angry about the coalition's deficit reduction programme and its effects on the public sector.

"You can't just look at what's happening around pensions as a single issue. All our members provide public services. You look at what this coalition has decided to do to reduce the deficit and it's decided that most of the deficit   reduction programme will be at the expense of our public services." "The people that we represent are facing redundancy, a two-year pay freeze, while inflation is 5 per cent and gas prices are going up 20 per cent, and they are desperately worried about privatisation of the services they have committed their working lives to."

Unison accused the government of trying to "soften up" public sector workers' rights to pave the way to privatising elements of the state. Referring to a consultation that could remove state employees' rights to keep their public sector pensions if their service is outsourced to the private sector: "It means that cowboys that we used to have in the 1980s can put in bids that will always undermine the public service bid and they will get the contract not on the quality of work but because they are cheapest. It's just to soften the way for privatisation."

Unison is one of Labour's (British Labour Party) largest donors, giving £423,000 in the past year alone.

Angela Eagle, Labour's shadow chief secretary to the treasury, said: "What we are seeing today is the latest calamitous episode of this government's completely chaotic way of running the country." Danny Alexander [the Treasury chief secretary] has made an announcement about the retirement age whilst they are in the middle of negotiations with the trade unions. If they are serious about reforming public sector pensions and serious about getting this proposal agreed then Danny Alexander has gone about it in the most incompetent way imaginable.

It is just one example. Other European countries too are rocking with militant strikes and demonstrations against pension privatisation. In India too, unleashing militant struggles, workers and employees won’t allow this nefarious design of the government to succeed.