Employers attack public sector pensions

Public sector unions have expressed their anger about proposed changes to the pensions system. The STAL local government union says that increases in contributions were bad enough but now the government also wants to cut pensions that are already being paid out to retired workers. The union along with other members of the Frente Comum of public sector unions will be staging a national protest against the proposals on 25 September. The SINTAP public sector trade union is also opposed to the cuts and made its position clear in talks with the minister of public administration. [Read more at >

The UGT and CCOO trade union confederations have criticised the latest proposals on pensions from the government both because of the impact on workers and the fact that it flies in the face of the social and economic agreement negotiated in 2011. The reforms will mean cuts to early retirement and partial unemployment benefits. The unions argue that early retirement provisions are not about abuse of the system but are reserved only for older workers (61 or 63 years) with long careers (between 30 and 33 years), and whose pensions are reduced to take account of being paid early. [Read more at >

Public sector workers in several countries have found their pensions targeted as part of government austerity measures. In one of the first significant moves on pensions following the economic and financial crisis, public sector workers in Ireland were forced to pay increased pension contributions. The so-called “pensions levy” meant that on average workers suffered a 7.5% cut in their net pay. In Greece and Spain higher pension ages and longer periods of contributions required for a full pension have also featured in the cuts imposed by governments. Some details on these three countries are