Accept Cuts Or We'll Target Pensions, David Cameron Warns Unions

[RentingForever]

I'm surprised how "nice" the government is being to public sector workers. They could easily impose 5% wage cuts for public sector workers earning more than 30k and 10% less for those earning over 45k. Also reduce maximum pension sizes and limit the time to when they can be claimed. At the moment they just have a freeze, which is quite generous compared to many in the private sector.

Other governments are doing similar things. The public sector workers in the UK still have a good deal in general.

It's not even a real freeze for many. The cost-of-living increase has been frozen, but the automatic yearly jump up to the next increment on your pay scale is still there as far as I'm aware.

[robo1968]

There is quite a bit of evidence to suggest that many private sector workers have reduced their hours and hence pay to keep their jobs. Many also did take pay freezes and pay cuts. The public sector has without doubt been shielded form pain up until now, through putting unacceptable strain on the private sector. This has to stop, and it looks like this government is at last taking steps in the right direction.

Agreed. I know many people in the private sector who have taken cuts of some sort, by looking for public sector freezes/reductions it is not a case of seeking retribution or envy, it is simply a case of affordability.

[headmelter]

It's not even a real freeze for many. The cost-of-living increase has been frozen, but the automatic yearly jump up to the next increment on your pay scale is still there as far as I'm aware.

It's no longer automatic in the NHS.

AFC, the new pay structure introduced gateways which need to be attained through a knowledge and skills framework where an employee has demonstrated they have improved their knowledge and skill in order to realise a higher increment.

[aa3]

But the public sector have contracts and it would be illegal to impose changes. Previous governments have a lot to answer for. The NHS woman with her 200k pay off; contractual, Goodwin's pay off; contractual. Public sector pensions and pay; contractual.

That said, DC needs to bite the bullet and make the cuts, if the public sector go on strike this will be good as they will not get paid and so help reduce the deficit. We may have a Winter of strikes but the pubic sector needs to be cut - as the previous Labour treasurer said 'There is no money'

The public contracts is something I have been wondering about. Back in college law I remember learning that a state can change any contract it wants, however it wants, and there is no legal recourse. Now most states choose to honour all their contracts to give them credibility over the long run.

But its not like a company which has to go through bankruptcy to change the terms of contracts. A state can choose not to honour contracts if it wishes.

[huw]

Other governments are doing similar things. The public sector workers in the UK still have a good deal in general.

We won't do it because of the impact of the subsequent deflation/default on the banking system.

If you look at Ireland, they can outsource the consequences to the ECB. Even if we were in the EZ I don't think we'd be able to do that, we're too big.

However, we can and do cut real wages.

[Si1]

Interesting, does European law come into it? If DC does force changes then let's see if they all go on strike. After all there is no money and you can't pay people without money.

I think the magna carta, the bill of rights, and other elements of our constitution written over the past 1000 years probably have a powerful influence too

[Nickolarge]

Ah, so its either or is it David?

Or more likely, accept the first, and be weakened for the second....

link

Every day my estimate of how long this government that nobody voted for will last is going down.

Every time one of them speaks on any subject another fortnight comes off (and I never gave them very long in the first place).

[Nickolarge]

My Sunday paper says that half the LibDem voters polled are ready to give them the old heave ho already.

This will have already been clear to all LibDem MP's with the possible exception of the ones who got the cabinet posts.

I stated that this deal was electoral suicide for the LibDems on the day it was struck. I admit that for a very short while I thought I was badly wrong.

Just goes to show that instinctive first impressions are so often spot on.

[Guest absolutezero]

My Sunday paper says that half the LibDem voters polled are ready to give them the old heave ho already.

This will have already been clear to all LibDem MP's with the possible exception of the ones who got the cabinet posts.

I stated that this deal was electoral suicide for the LibDems on the day it was struck. I admit that for a very short while I thought I was badly wrong.

Just goes to show that instinctive first impressions are so often spot on.

Sad that the LibDems jumped into bed with the Tories because CallMeDave gave Clegg a sniff of power.

They abandoned their principles. Very, very sad.

It will end in tears for both sides, but especially the LibDems at the next election.

[Guest happy?]

Don't we just need to put in higher employee contributions? And then for the private sector to grow some balls and get their pensions back from the robbing elite that nobbled them away in the first place?

Your problem is you're full of pragmatic ideas - the ideologues here want your gonads - not practical and workable suggestions.

[mitchbux]

Pensions are going to have to be tackled.

It's impossible for the problem to be left.

Because the pensions are based on salary, surely if the salaries are brought down then the pension liability will also be reduced.

[Guest absolutezero]

The public contracts is something I have been wondering about. Back in college law I remember learning that a state can change any contract it wants, however it wants, and there is no legal recourse. Now most states choose to honour all their contracts to give them credibility over the long run.

But its not like a company which has to go through bankruptcy to change the terms of contracts. A state can choose not to honour contracts if it wishes.

Which then begs the question:

What's the point in having a contract if it doesn't have to get enforced.

If it was someone else saying that I' be calling BS on this one.