Jun 2011 30

Thousands of public sector workers are on strike today over the Government’s pension reforms. Those reforms are vital so that taxpayers don’t foot an unfair share of the bill for the over a trillion pound unfunded public sector pension liability. The TPA has long called for reform to make the system fairer and more sustainable.

Matthew Sinclair, Director of the TaxPayers’ Alliance, appeared on BBC News this morning to discuss the strikes:

Matthew Sinclair BBC News

He added:

“Unions shouldn’t be disrupting services and forcing schools to close in a vain attempt to stop long overdue changes to their pensions. With an ageing population and huge pressure on the public finances, there needs to be reform so taxpayers aren’t paying a fortune to support pensions far more generous than they enjoy themselves. The Government’s proposals are moderate steps towards making the arrangements a little fairer and more affordable. Striking in response to them is disproportionate and will ultimately prove futile as these arrangements are too expensive to last. The unions should negotiate with the Government, avoid a strike if at all possible, and be realistic about the pressures faced by the families paying for their pensions.”

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  • Blarg1987

    I think it is silly to say Unions should not be disrupting services otherwise how are people who feel that their terms and conditions are being violated emant to protest? If memory serves me correctly former state now private sector companies threatened strike action when privatisation was proposed and so it was agreed their final salary schemes should be kept.

    It all good and well saying pensions need reform but will that it will be offset with company perks and bonuses as is the case in private sector companies if not are you proposing the public sector should be wage slaves and if so would you lead by example which so far no one has done so in both their criticism of the public sector or the policies they advocate.

    Could there be a fear that if the unions do win on a key issue like this it could spark a revival in union movements that will encourage people to stand up against their employers who say they need to make savings and spending cuts while the books show record breaking profits?

    On a side note please be more accurate in your comment about what the pension liability is, that is if their actually is one as several areas of the public sector have actually shown pension surpluses, so I would advocate more accurate factual reporting.

    • Orac54aq

      But how is the taxpayer to protest that these  pension provisions are unfair? The Blair Government ripped the heart out of private pensions. Labour is the political wing of the Trades Union movement. Labour therefore effectively took private pension money to pay for public pension money. The argument as to WHY they did that is moot.

      The unions have yet to explain why they think that the actions of the Blair government were fair. What we’ve seen instead is a load of smokescreen about why rich people are rich. The rich won’t pay. They have the resources not to. The unions know perfectly well that the middle classes will have to pay for whatever is decided. But they don’t have the courage to say “Go on, pay for our members to have something you can’t afford”. That’s the real debate – so let’s have it.. 

      • Blarg1987

        Simple, if the tax payer wants better provisions for themselves, there are several things that can be done:

        1 – Write to you MP and set up groups saying you want better provision in pensions, most politicians now use sales tactics etc, so if there is a large amount of the public wo want better pensions that may encourage bettter legislation.

        2 -  If not in one join a trade Union movement, if you feel strongly about wanting beter pension provisions which would be most likely a popular subject with your colleagues creating a union movement may encourage you employer to re evaluate their pension schemes and offer better ones, anyone can join a trade union movement, and you can not be sacked for doing so, if so you can very easily take your employer to tribunal for unfair dismissal and win.

        3 – Use the political system against the parties – If you gain support in wanting better pensions in the private sector (which I personnaly support) try and encourage groups to support this aim, and if you get big enough write to all 3 big parties, those that want to be elected will say what they want to to try and gain your vote, which will cause those that are in power to provide something to ensure they stay in power which I accept might not give you everything you would like, but would get the ball rolling.

        Besides, is it really a good idea to bring everybody down, and surely if these pension reforms go through it will give the green light to priavte industry to start anotherround of cutting pay and conditions which will lead to another cycle of racing down to the bottom, which I fundementally disagree with.

        • Sir Everard Digby

          The issue here is who pays for public sector pensions -not one word from the Unions about low paid private sector workings paying for index linked pensions and  final salary schemes for Union members.. This is the real scandal. Much has been said by the lazy left about a 4K per annum pension hardly being gold plated. However no comment about a private sector worker receiving the same 4K per annum pension with no guarantee of what they will receive and no index linking -plus paying for these same benefits for public sector workers. This takes away money they could invest to increase their retirement income. 

          So who are the Unions ‘fighting’ for? Not low paid workers -they are actively campaigning to make some of them worse off. A disgrace.

          I think you will find that private sector pensions have been squeezed about as far as they can. Clearly you don’t understand what happened on the last goverment’s watch.The benefit of pensions in the public sector improved at the expense of the private sector. A public sector pension is worth 21% of salary on average against 7% in the private sector .

          This ’cause’ won’t get a sympathetic hearing from those of us  who have experienced this plus short time working/pay cuts in 2008/9.

          Time for the public sector to wake up and smell the coffee.

          • Blarg1987

            Unions represent their memebers, so if their memebership is made up of private sector members they will represent them, if they represent public secot workers the same rule applies.
            To correct you on one point, please see question time and Union websites where unions have flagged up about poor pensions in the private sector, but of course you won’t hear that on most front pages as it won’t sell headlines.
            Yes I do know what the last goverment did, it did raid private pension funds and also carry on policies from the previous goverment before it, so it CAN NOT be said that it really was a left wing goverment, that represented all the people.
            The irony about it is that if a political party had left wing ideas after the previous goverment would they really have ben voted in? I think as society has shown with the credit boom years the ansewer would be no, although I do accept I could be wrong. 

          • Blarg1987

            Unions represent their memebers, so if their memebership is made up of private sector members they will represent them, if they represent public secot workers the same rule applies.
            To correct you on one point, please see question time and Union websites where unions have flagged up about poor pensions in the private sector, but of course you won’t hear that on most front pages as it won’t sell headlines.
            Yes I do know what the last goverment did, it did raid private pension funds and also carry on policies from the previous goverment before it, so it CAN NOT be said that it really was a left wing goverment, that represented all the people.
            The irony about it is that if a political party had left wing ideas after the previous goverment would they really have ben voted in? I think as society has shown with the credit boom years the ansewer would be no, although I do accept I could be wrong. 

          • Grim Reaper

            Sod off Public Sector. I’m sick and tired of supporting you. Parasites the lot. You contribute nothing to the wealth of the country. Why can’t you accept that fact?

        • Grim Reaper

          Who is more important People or Industry? Industry does not need People for without them it would have no need to survive. On the other hand people need Industry for without it they would become extinct. Therefore Industry is more important than People. People should think what can I do for Industry and not what can Industry do for me.

          • Blarg1987

            That is a dangerous precedent, in all fairness industry and people, public and private sectors are all symbiotic relationships in which both are required to survive, if people did not exist or all people were paid very little, industry would not exist or be abkle to sell products to people, as no one could afford anything.
            Granted the public sector does not directly contribute weath to the nation, but it is very short sighted to say it does not contribute any wealth, if you had to actually measure health care for the workforce, education of the workforce and able to transport good, services and people to work and to clients, this is something that can not really be calcualted unless people want their taxes to go up or be wasted on actually working out how much wealth is contributed to society by these sectors.
            There are parasites in all walks of life, we have the parasies of greed in the private sector whos jobs destroy wealth creation and parasites in the public sector who do nothing. Either way ALL of society is paying for it weather directly or indirectley.

  • http://twitter.com/ukgoldbug Gold Bug

    Taxpayers already foot an unfair share – 100%. That’s what all these unproductive and inefficient people cost and that cost is met from tax which is theft. There are virtually no services that couldn’t be provided privately and at vastly less cost. 

    • Blarg1987

      Can you please provide evidence of services which have? So far most if not all services that have been outsourced has cost more, and ben less efficent, examples include the following:

      Southern Cross care homes
      All utility companies
      Railway Network
      Outsourced refuse collections

      These are to just name a few, but I do accept I could be wrong, but I have not seen any evidence that stacks up to the contrary.

  • Clive Wedgery

    It’s high time the Private Sector galvanised itself and flatly told the Public Sector that they own them “lock, stock and barrel”. The Private Sector taxes pay the wages of the Public Sector including their taxes and pension contribution. The Public Sector contributes nothing towards the economy. Every penny spent by the Public Sector is provided by the Private Sector. This should be made clear to that Sector.