2011 July epsucob@NEWS 11: Pensions
The pensions challenge for trade unions across Europe
On 30 June in the UK thousands of civil servants took strike action over government plans to cut their pensions. Other public sector pension schemes in the UK are also under threat. Last year millions of workers across France took industrial action and demontrated over government plans to increase the pension age. This special issue of epsucob@NEWS provides a round-up of some of the main challenges facing workers across Europe, including the recent success in Slovenia where a referendum rejected the government's plans to increase the retirement age.
Widespread support for pensions strike
The PCS, the largest civil service union, reports that the 30 June national strike was one of the best supported ever. The union took action over the government’s refusal to negotiate the main changes it is proposing to make to the civil service pension scheme. Civil servants will be required to work longer to get a full pension and contributions will be increased. Similar changes are being proposed to other public sector schemes. Two of the main teaching unions also took action yesterday while the POA prison union organised workplace protest meetings and started a ballot for industrial action
Unions successful in campaign against pension reform
Not only did trade unions manage to secure a referendum on government plans for pension reform but their campaigning also contributed to a massive rejection of those plans. The government wanted to increase the retirement age and reduce the replacement rate (the level of pension in relation to salary at retirement) but over 70% voted against the proposals. Read more at > (pensions news website)
Unions maintain their opposition to pension changes
Throughout most of 2010 trade unions were instrumental in mobilising millions of workers in opposition to the government’s proposals to raise the pension age and the number of years of contributions to earn a full pension. Despite the strikes and protests the government went ahead with the reforms but most trade unions continue to make their opposition known. In a recent meeting of the pension schemes steering committee the CGT, for example, made it clear that it would continue to highlight the situation of people on very low pensions, often hidden by statistics citing average pensions. It
Union calls for changes to pensions agreement
Public services union FNV Abvakabo is concerned about important elements in the national pension agreement that has been negotiated between the employers and trade unions. The union argues that it shifts too much risk onto employees in the event of bad investment returns. It also maintains that the system has to recognise that many workers have very demanding jobs and are on low incomes and they need the flexibility to retire early on a decent pension. The proposed agreement will see the pension age increased from 65 to 66 in 2020 and then to 67 in 2025. [Read more at > FNV Abvakabo (NL)->http
Unions mobilise against pension and other reforms
On 21 May thousands of people took part in a national demonstration against government reforms organised by trade unions and other groups campaigning on social issues. Changes to the labour code, privatisation and pension reform are among the main issues of concern for the trade unions. The government has already set in motion a mechanism to automatically increase retirement age as life expectancy increases. The other main pension change will is aimed at getting workers to opt out of the state scheme and take out personal private pensions. Read more at > EPSU (EN)
Trade unions negotiate deal on pensions
Last year, after threats of industrial action, trade unions managed to negotiate changes to the government’s plans for pension reforms. Retirement ages and the number of years of contributions required for a full pension are being introduced but over several years and not coming fully into effect until 2020 and 2021. Read more at > Sofia Echo news website (EN)
Government arguments undermined as fewer take early retirement
The government plans to cut early retirement provision, but as the FOA public services union points out there is already a trend away from early retirement. Official figures show just under 2,000 people on the early retirement scheme. The union welcomes the fact that improvements to working conditions are allowing more people to work longer. However, FOA argues strongly that the early retirement scheme is vital for those workers in demanding jobs who started work at a young age. It gives the example of workers in the childcare sector, organised by both FOA and the BUPL trade union, where the
Pensions under attack as part of austerity measures
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