Tuesday, 13 July 2010


The Govt wants to cut civil service redundancy and early retirement pay.  Apparently they do get a lot of money when they leave and we have no money at the moment.  

The last Govt tried to make the cuts but came a cropper in May this year because the Admin Court (Sales J) held that the unions had to consent to any reduction: R(PCS) v Minister for the Civil Service - judgment here.  

Section 2(3) Superannuation Act 1972 was the problem:
    (3) No scheme under the said section 1 shall make any provision which would have the effect of reducing the amount of any pension, allowance or gratuity, in so far as that amount is calculated by reference to service rendered before the coming into operation of the scheme, or of reducing the length of any service so rendered, unless the persons consulted in accordance with section 1(3) of this Act have agreed to the inclusion of that provision.
     Section 1(3) says:   (3) Before making any scheme under this section the Minister, or, if the Minister so directs in relation to a particular scheme, another Minister of the Crown specified in the direction, shall consult with persons appearing to the Minister or that other Minister, as the case may be, to represent persons likely to be affected by the proposed scheme or with the last-mentioned persons.
    In other words the Unions consulted originally have to agree to any reduction in pension, allowance or gratuity.
    Turkeys clearly don't vote for Christmas and the PCS is unlikely to agree to its members having their generous superannuation terms reduced.
    So the new Govt - Oliver Letwin in charge -  is going to ride roughshod over the Unions and amend Superannuation Act to remove the need for the Union's consent.  There is a press release: Not that we have seen the Bill yet - see last post on that topic!
Nice to see a good old fashioned fight between am almost tory govt and a old labour trade union.  

1 comment:

  1. Here, right is surely on the side of the Trade Union. Might is on the side of the government. Altreing the terms of a person's contract of employment should be a matter of agreement arrived at via, at least, genuine collective bargaining. [i.e. not the we've got you over the barrel type].