By Maximilian Clarke
Bowing to the mounting pressure exerted by trade unions and the prospect of widespread industrial action, the Treasury today (Wednesday) proposed a concession to the government's original Public Sector Pension reform proposal.
The concession offered incentives in the form of improved accrual rates and an offer not to alter the pensions of those retiring within the next decade.
In response to the gesture, the Institute of Directors have today stated that the concessions are unsustainable:
“The previous Government watered down reforms to public sector pensions in the face of a general strike threat,” the Institute’s Director General, Simon Walker said. “The present Government risks repeating their mistake. The public sector unions cannot be allowed to hold a gun to the Government’s head in this way.
“The Hutton Review proposals were the bare minimum necessary to put public sector pensions on a sustainable footing. Every new concession increases the inevitability of further reviews in the future. This is not a deal which can last 25 years.”
“It is not reasonable that private sector employees who will never enjoy defined benefit pensions should continue to subsidise public sector workers insulated from economic reality”
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