Briefing for Activists
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Transcript of Briefing for Activists
The crisis is not of our making
"The price of this financial crisis is being borne by people who
absolutely did not cause it, now is the period when the cost is being
paid, I'm surprised that the degree of public anger has not been
greater than it has.“
Mervyn King,
Governor, Bank of England
Paying More … 50% More!
Government cuts to funding equate to just over a 3% contribution increase on average for members.
If you pay 6%, a 3% addition is really a 50% increase!
Increases to be phased in
40% in 2012-13 40% in 2013-1420% in 2014-15
Contribution Increases
This is a tax to repay debts that were used to bail out the banks
None of the money will go into the schemes It threatens the whole system – if enough members
opt-out It unites all public sector workers in or have access to
a scheme It could allow public sector unions to co-ordinate
action We need to consult members & prepare for a ballot
for industrial action
Working Longer …
From November 2018 the State Pension Age will be 65 for both men & women
For those now between 42 to around 57 it will be 66 (April 2020)
For those between 34 and 42 it will be 67 (2034-36)
For those now 34 or younger it will be 68 (2044-46)
Getting Less …
The Government decided that public service pensions will increase by Consumer Price Index (CPI) instead of Retail Price Index (RPI) from April 2011
CPI is on average 0.7% per year lower than RPI
Lord Hutton says this represents a 15% cut in benefits
A member receiving an average public service pension of £7800pa will be £117 worse off this year
An end to Final Salary schemes?
Hutton stated that final salary schemes “disproportionately” favour high flyers
He has recommended switching to a career average scheme for public service workers by the end of the next parliament – i.e. 2015
Crucially he has stated that each year’s pensionable pay should increase in line with increases in average earnings up to when you leave or retire
What is a Career Average scheme?
This is a scheme that bases benefits on average earnings over a scheme membership rather than final salary
Such a scheme could potentially benefit members whose annual salary increases are generally less than the index used to increase pensionable pay and who are unlikely to benefit from regular promotions
There is no detail yet and UNISON is not necessarily against a CARE scheme as long as it’s not a clear cost-cutting exercise
Our Campaign Objectives
Prepare members to resist attacks on public sector pensions
Support negotiators to achieve the best outcome possible & prepare for industrial action
Make sure that UNISON members gain a greater understanding of public sector pension schemes – remove the pension jargon fog
Campaign Structure
National Project Team
Regional lead officers & organising teams, Regional lay member structures
Branches to have Pension Champions & Contacts – in regional & national networks
Pension Champions & Contacts
Pension ChampionsMake sure union briefings & information on changes to
public sector pensions are understood by the branch, workplace pension contacts & members.
They will take a lead role in supporting contacts, developing local campaign initiatives, making sure that the branch & members are prepared to take action to protect public sector pensions.
Pension ContactsDistribute material, take actions when requested. They
will be the workplace feedback link between members & the campaign/negotiators.
Talk to & recruit non members.
What Are The Key Issues We Face?
Budget measures 2011 – change to State Pension flat rate of £140
Change to pension increase calculations – RPI/CPI
Scheme contribution increases Retirement age increases Benefit changes to career average Fair Deal – TUPE transfers and pensions
and … Lack of public sympathy!
An end to Fair Deal - making it cheaper to privatise
Fair Deal is the agreement that enable TUPE transferred staff from public services to either remain their pension scheme or be provided with a “certified” broadly comparable scheme
Government is looking to scrap Fair Deal because of the relative cost to companies bidding for public service contracts
This would leave TUPE transferred staff at the pensions mercy of private contractors
Hutton - Other issues
Increasing the share of that cost that scheme members pay, while limiting employers’ contributions
A complete overhaul of the State Pension
New governance in all schemes – national bodies
Representation on LGPS investment boards
Incentives to merge LGPS funds Privatisation of scheme administration
Where can you find everything?
National Campaign
http://www.unison.org.uk/pensions/protectour.asp
Region Campaign
http://www.unison.org.uk/southeast/pensions.asp
Advice on Pensions
http://www.unison.org.uk/pensions/index.asp
Government Threats ...
”The first explicit acknowledgment by a coalition minister that the government could legislate to prevent widespread strikes.”
June 30th
On Thursday, June 30, nearly a million workers could be on strike together, from the PCS, UCU, NUT and ATL unions.
This includes teachers and education workers in schools, colleges and universities.
Talks Could Trigger Strikes
Industrial action ballot will be triggered if talks breakdown on 28th June.
We are on the road to sustained industrial action this Autumn.