Fairness at Work

The long-running public sector pensions is having one final burst of activity - before things shut down for the Christmas holidays.

Depending on who you believe the trade unions are either gearing up for more strikes in the New Year - or finally coming to their senses.

The Westminster government put forward new proposals that would benefit the lower paid - by delaying increased pension contributions for another year - so that only employeees earning more than £26,557 a year would pay more.

At the moment the proposal only applies to staff in the NHS - but I imagine the same principle could easily be extended elsewhere.

In any event it seems a sensible basis for negotiation - because the other demands of the trade unions  - retaining final salary pensions and earlier retirement ages for some groups - are never going to be conceded.

Even the Labour party thinks that these two demands are bonkers - and discriminatory to boot.

So the issue is - will the trade unions move to defend the interests of the lower paid - or will the whole charade drag on into 2012?.

My money's on a settlement.

Because the strike is not well supported and some of the key union demands favour the better paid - and smaller groups of workers with their own vested interests.

For example those who are able to retire earlier than others.

There is no sensible case for having anything other than a career average pension scheme - so you get out broadly what you pay in.

Nor is there a case for some groups of workers being allowed to retire much earlier than others.

The guiding principle ought to be that everyone retires at the same retirement age - unless they want to go early and accept a reduced pension.

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