Tuesday, December 20, 2011

Ministers claim victory over pensions... then unions pull out of the deal

A landmark deal to resolve the bitter public sector pensions dispute descended into shambles last night – just hours after ministers declared victory.

Unions representing local government workers pulled out of an agreement on pension reform following a controversial intervention by the Communities Secretary Eric Pickles.

Union leaders were furious after Mr Pickles allegedly inserted new conditions into a carefully-worded deal agreed with the Treasury that would have capped employer contributions to workers’ pensions.

The three main local government unions said they had decided to ‘suspend our agreement’ with the Government and seek talks to ‘restore trust and confidence urgently’.

The GMB union said any new conditions would be a ‘deal-breaker’. Read More