FDA criticises departmental statements on pensions

The FDA has condemned statements on pensions issued today by Permanent Secretaries. The statements, which appear to have been issued on the instructions of Ministers, follow on from Treasury Chief Secretary Danny Alexander's unhelpful and provocative speech delivered last Friday. The FDA condemned Alexander's speech as effectively pre-determining the outcome of negotiations and as a provocation to strike action.

Today's statements compound the serious damage that the Alexander speech inflicted on the prospects for meaningful negotiations, by referring to proposals for higher pension contributions that have yet to be put to the unions, let alone been the subject of negotiations. Moreover, the statements assume that a switch to career average arrangements is a given, despite Ministers being well aware that no agreement has been reached with any union on such a move.

Whilst civil servants obviously have a key role in providing policy advice to Ministers, the FDA is concerned that the civil service must recognise its responsibilities as an employer to offer a fair and competitive total reward package, of which pensions are a critical part.

Commenting on today's development, FDA General Secretary Jonathan Baume said:

"The TUC, on behalf of all the public sector unions, has been making strenuous efforts since Danny Alexander's speech to ensure the continuation of constructive dialogue in order to find a way back to meaningful negotiations. Ministers need to recognise that widespread industrial action across the public sector is a serious possibility and refrain from taking actions that make that possibility ever more likely. We are all currently in a hole of the Treasury's making and the Government needs to stop digging if meaningful negotiations on pensions are going to be possible."

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