Pensions Defeat


As predicted, the trade unions lost their latest court battle with the government - over changes to the way that public-sector pension increases are calculated.

The case relates to the government's decision to use the consumer price index (CPI) - instead of the normally faster-rising retail price index (RPI) - to measure price rises influencing pension upgrades.

The unions accused the government of acting unlawfully in reducing public sector pension costs - as part of its plans to bring the UK's financial deficit under control.

But three judges at the Court of Appeal dismissed the case - and the unions are now weighing up whether to try and take their arguments to the UK Supreme Court.

If they do I can't see them winning - but what struck me is how willingly the unions take up arms over pensions - compared to their reluctance to do the right thing over equal pay.

For years the unions turned a blind eye to widespread pay discrimination in local councils - refusing to strike a blow in the courts - on behalf of their lowest (mainly women) paid members.

Yet here they are - at the drop of a hat - charging off to the highest courts in the land in a desperate effort to defend final salary pension schemes - that do nothing for the low paid.

So it will be interesting to see what happens next - having come this far the unions may feel obliged to exhaust the legal process - even if many insiders realise the game is up.

Me, I just think it's sad that all this time, effort and money is wasted on 'grandstanding' and political posturing - because that's not really in the best interest of ordinary union members.

If the trade unions had committed the same level of effort and resources into securing equal pay 10 years ago - they wouldn't be in the kind of mess they find themselves in now.  

Because equal pay is about more than hourly rates of pay and annual salaries - it's about equal treatment and fairness over pensions as well. 

Yet at the moment the pension scheme 'rules' are deliberately designed to favour the much higher paid groups - which tells you all you need to know about trade union priorities

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