Public and Commercial Services Union

• Employer plans to cut jobs on the cheap
• Members urged to vote yes/yes in the Ballot

Background

Last year, the government put forward proposals to make changes to the Civil Service Compensation Scheme (CSCS). If implemented, the changes could leave many PCS members tens of thousands of pounds worse off in the event of voluntary or compulsory redundancy. The PCS National Executive Committee has unanimously rejected the proposals. Meetings have taken place with government Ministers to make clear our objections and seek new proposals. We have worked hard in an attempt to secure an acceptable agreement. Campaign Updates and Branch Briefings have been issued to members and reps and we have urged members to lobby their MPs.

Cuts

The bailout of the bankers has left a gap in the public finances. Rather than make the bankers pay for their folly through a progressive system of taxation, the main political parties are signing up to cuts in public services to plug the gap. PCS members are directly in the firing line of those cuts and massive job losses are planned. The government are now seeking to achieve those job cuts on the cheap by slashing our entitlements under the CSCS. PCS is determined that our members will not pay the price for a mess that is not of our making.

Negotiations?

Tessa Jowell, Cabinet Office Minister, had stated to the unions at a meeting on 22 September 2009 that her officials would be instructed to discuss our concerns over proposed changes to the CSCS. However, officials had cancelled meetings with the unions without explanation and engaging with the employer on the issue was becoming increasingly difficult. It was not entirely unexpected, therefore, but nonetheless deeply offensive, that on 4 December 2009 the unions were summoned to a meeting to be handed the government’s revised proposals and a letter from the Minister which describes them as the government’s “final decision”. At the meeting we became aware that messages were being issued simultaneously to staff in civil service departments on the new proposals.

The Proposals

The "final decision" of the Government is a repeat of the proposals published in July 2009, with two concessions aimed at PCS members. First, the maximum compulsory redundancy payment will now be set at three years pay, rather than two, where this leads to a payment of less than £50,000. In other cases the payment will be limited to two years pay, or £50,000 whichever is the greater. The Cabinet Office claims that this is a major change which will "protect" the lower paid in particular. Secondly, for someone made redundant within 5 years of pension age, and where a redundancy payment is not sufficient to buy out an actuarial reduction on the pension earned, the employer will make up the difference. This means that access to an unreduced pension will still be available to all those who are within five years of pension age. This will also extend to those who were age 50 or more on 31 July 2009 and who have at least five years service when the original proposals were published.

Despite these concessions, it is clear that the Cabinet Office have largely ignored the key elements of our objections to the proposals which so many members took up in their personal responses to the consultation which formally ended on 5th October. Our demands are for a negotiated agreement that protects members’ existing entitlements under the CSCS and provides for acceptable protection for members in the nuvos scheme. An update for members was placed on the PCS website in December 2009, and members were urged to continue to lobby their MPs to express their opposition to the government’s cuts and the need for a negotiated settlement.

Further meeting

On 17 December the civil service unions attended a further meeting with the Minister. The civil service unions made it clear that the proposals to cut the CSCS were not acceptable and that we regarded the failure to attempt to come to an agreement as a breach of faith. The Minister said she would arrange a further meeting with Cabinet Office officials in early January before the order is laid. However, she made it clear that the meeting could only discuss process issues and the financial information that the unions had previously asked for. The unions agreed to the meeting in order to make one last effort at finding a way forward without the need for industrial and legal action. That meeting took place on 11 January 2010 but ended without agreement on our substantive concerns.

Membership consultation meetings

The reaction of members to the government’s proposals was tested in a series of workplace meetings held in September and October 2009. Over 33,000 members came to 1000 meetings making it the largest such exercise the union has carried out. The overwhelming majority made it very clear that they supported the union’s objectives to protect members’ existing entitlements. More than 80% said that industrial action should be considered if negotiations do not produce the result we need. PCS reps report that they have not seen such strength of feeling for many years.

The views of members were also made clear in the responses to the government’s consultation. 18,000 comments were sent to the Cabinet Office, the overwhelming majority of which clearly opposed the proposed cuts to the scheme. This was a marvellous response which communicated effectively the depth of feeling on the issue to the employer.

Legal action

In order to ensure that we pursue every available avenue to protect members’ interests, the NEC has agreed to instigate a judicial review to halt the process by which the government seems intent of removing members’ accrued rights under the CSCS. However, success in this arena will not in itself address all our concerns and we need to consider an industrial response.

Ballot for industrial action

The NEC has agreed to proceed to a ballot on a campaign of national industrial action, with the aim of securing an agreement that would protect members’ entitlements under the CSCS. The ballot opens on 4 February 2010 and closes on 25 February 2010.

Members will be asked two questions in the ballot. The first question asks members if they are prepared to take part in discontinuous strike action. The second question asks members if they are prepared to take part in discontinuous action short of a strike. Members are urged to Vote yes to both questions.

Programme of action

Feedback from the membership meetings has highlighted the necessity for action at a level that will exert sufficient pressure on the employer. We have an important window of opportunity in that there will be a great deal of sensitivity to industrial and political pressure in the run up to a general election. We must exploit this period to maximum effect. The NEC will take strategic decisions on when it is best to deploy industrial action and in what forms as the campaign unfolds.

Objectives of the campaign

The objectives of our action are to seek a negotiated agreement that protects members’ existing entitlements under the CSCS and provides for acceptable protection for members in the nuvos scheme. It follows that we will continue to seek meetings and discussions with Ministers and officials and use all available avenues to achieve this.

Political campaigning – lobby your MP

In order for the CSCS to be amended, the government will need to lay an order in Parliament. Through the auspices of our Parliamentary Group, PCS has put forward an Early Day Motion opposing the changes which has been signed by 115 MPs. This number continues to grow. The support for the EDM, and that generally received from MPs at drop-in briefings, shows that MPs are sympathetic to our demands for protection of members’ entitlements. Over 100 signatures for an EDM on an industrial issue is a tremendous level of support. This is testimony to the effective lobbying in constituencies carried out by members so far. It is vital that we maintain this pressure and members are asked to again lobby their MPs in support of our demands. It is inevitable that MPs will be more receptive to our concerns in the run-up to a General Election and we must make the most of that opportunity.

Members meetings

Branches are putting in place plans for members meetings and these will be advertised shortly in your locality. National and local PCS speakers will be able to give you full details of the issues and the campaign. Please ensure that you attend.

Vote yes/yes

It is vital that members send a clear signal to the employer that we will not accept arbitrary cuts to our entitlements and that we will not allow them to cut our jobs on the cheap. A large majority in favour of industrial action will increase the pressure on the employer. All members are urged to Vote yes/yes in the ballot.