MPs to hear case against cuts to redundancy pay

27 July 2010

MPs on an influential parliamentary committee will today hear PCS's case against cuts to civil service redundancy terms.

PCS deputy general secretary Hugh Lanning is giving evidence before the Commons public administration select committee.

Hugh will say that PCS remains ready to negotiate a fair agreement that protects the rights of existing civil and public servants, but that we are committed to opposing the cuts the government is threatening to impose.

The High Court has ruled twice in PCS’s favour that it was unlawful for the previous government to make detrimental changes for serving staff without our agreement.

Despite this, Cabinet Office minister Francis Maude laid a bill in parliament on 15 July to severely limit redundancy terms. We have warned any attempt to do this could be illegal.

More than 120 MPs, including almost a quarter of Liberal Democrats, have now joined a call for the government to enter urgent negotiations with us to seek a negotiated settlement.

Hugh will remind MPs on the committee that the terms of the civil service compensation scheme are contractual rights that accrue through length of service, and can not be changed without agreement. He will say it would be an abuse of power for the government to attempt to usurp the High Court’s ruling by changing the law.

He will also say that the scheme, along with a civil service pension, has always been offered as recompense for comparably lower wages than in the private sector and other parts of the public sector. Research shows civil service pay remains lower by comparison with other sectors.

Maude has indicated he is prepared to talk, but only on a limited set of criteria, and we find it unacceptable that we are expected to negotiate with a gun to our heads.

As PCS general secretary Mark Serwotka explained in a column in the Guardian newspaper recently, the government also refused an invitation from us to meet immediately following the High Court decision.

The minister has tried to blame PCS for these cuts. But his proposal goes further than the previous government’s and undercuts other public sector schemes, which could leave other public sector workers vulnerable to cuts in future.

Hugh said: "I welcome the opportunity to brief MPs about how this new so called ‘fair and progressive’ government plans to abuse the unique power it has as an employer by changing the law simply because the existing legislation protects its staff from having their contracts ripped up.

"The High Court ruled twice in our favour that it was unlawful for the previous government to impose cuts without our agreement, so this is the basis upon which the new government should enter into negotiations.

"We believe the bill Francis Maude has introduced is not only wrong in principle, it is also possibly illegal and we considering our legal options.

"There is an alternative to these cuts, and we will use every opportunity to make the case for investment in our public services."


 

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