From the TUC

Danny Alexander on public sector pensions: An inflammatory intervention

17 Jun 2011, by Guest in Pensions & Investment

Unions representing many public sector workers are currently engaged in complex negotiations with the government over changes to public sector pensions. Now is a pretty critical time in the talks, and Danny Alexander’s comments in the Telegraph and on the Today Programme this morning are extremely unhelpful.

The Chief Secretary to the Treasury’s inflammatory public intervention is a clumsy mix of announcements apparently designed to pre-empt the talks, coupled with crude threats that even worse terms might be imposed if unions refuse to acquiesce to this assault on their pensions.

Many of the detailed proposals set out by Danny Alexander today have not even been put to the TUC negotiators yet, and the government has yet to give a response to specific proposals tabled by the trade union side.

I have found over many years that if you’re seriously trying to build trust to settle a difficult dispute you should talk honestly and openly inside the negotiating room and exercise self restraint outside. This speech, and the media-spinning operation around it, has dealt a serious blow to union confidence in the government’s good faith in these talks.