Government wobbles on pensions - The Sun

MINISTERS wobbled on the public sector pensions crackdown yesterday as unions threatened strikes.

George Osborne had promised to unveil a shake-up in the Budget in March.

But the Treasury said the announcement has now been delayed until June to allow fresh talks with the unions.

It came as TUC general secretary Brendan Barber vowed action over a "volatile cocktail of issues", including pensions, job cuts and pay freezes.

Speaking after union barons held a council of war in London, he said: "No one is talking about a general strike, but these attacks on our members could give rise to industrial action on specific disputes."

The Government wants millions of public workers to pay three per cent more into their retirement pots. That will help fill the vast black hole in the sector's pensions and save taxpayers 2.8billion.

But unions want to rewrite the plans so the low-paid put in less and big earners more.

The Treasury last night confirmed the delay to discuss the union proposals. Mr Barber said: "They'll be difficult negotiations, as public service workers won't let their pensions be hammered. We hope to make progress but cannot rule out industrial action on this issue."

Unison boss Dave Prentis said: "We'll work together to battle these cuts."

And RMT chief Bob Crow added: "There is real unity of purpose among unions as we mobilise to fight."

The Treasury insisted it had not been forced to retreat. It said reforms will still be introduced in April 2012 as planned. The delay only affected when the Chancellor gives details of his plans.

g.wilson@the-sun.co.uk

Advertisement