Government ‘bribe’ has failed, says IoD

Dated: 3 November 2011

  • Strike ballot means yesterday’s offer should be taken off the table

Responding to today’s announcement of the result of the ballot of Unison members, Simon Walker, Director General of the Institute of Directors, said:

“Yesterday’s offer from the Government was designed to avert strikes, but just one day later, it looks as though this bribe has failed. The unions have the Government over a barrel. Once you start offering concessions, when do you stop?

“The original reform proposals were the bare minimum needed to put public sector pensions on a sustainable footing. Yesterday’s more generous offer was a bad idea and should now be taken off the table. There is no sense in carrying our half-hearted reforms now and crisis cuts in five or ten years’ time.

“The plain fact is that people are living longer and so public sector pensions, like any other type of pensions, need to be reformed so they can continue to be paid in the future. Ordinary taxpayers cannot continue to subsidise public sector pensioners at today’s levels.”

 

  • The most recent ONS data shows that, in 2009, there were 5.4 million active members of defined benefit schemes in the public sector, compared with 2.4 million in the private sector. (ONS, Occupational Pension Schemes Annual Report 2009, October 2010).  This represents around 86 per cent of the 6.3 million public sector employees and around 11 per cent of the 22.5 million private sector employees in 2009 (ONS, Labour Market Statistics database).
  • This is also true of IoD members.  A Policy Voice survey of 980 IoD members in February 2009 found that just 12 per cent were members of defined benefit pension schemes, and the figure is almost certainly lower today.

ENDS

Contact Points

Edwin Morgan
Media Relations Manager
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
Tel: +44 (0)20 7451 3392
Mob: +44 (0)7814 386 243
Email: edwin.morgan@iod.com
Website: www.iod.com/policy

Notes to editors

  • The Institute of Directors (IoD) was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with approximately 38,000 members in the United Kingdom and overseas. Membership includes directors from right across the business spectrum – from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.
  • The IoD provides an effective voice to represent the interests of its members to key opinion-formers at the highest levels. These include Government ministers and their shadows, parliamentary committee members, senior civil servants and think-tanks. IoD policies and views are actively promoted to the national, regional and trade media. Follow us on Twitter to get the IoD’s reaction on business and public policy issues.
  • The IoD offers a wide range of business services which include business centre facilities, with ten UK centres (three in London, one each in Reading, Birmingham, Cardiff, Manchester, Nottingham, Norwich, Edinburgh, Glasgow and Belfast) and one in Paris, conferences, networking events, virtual offices, issues-led guides and literature, as well as free access to business information and advisory services. The IoD places great emphasis on director development and has established a certified qualification for directors – Chartered Director – as well as running specific board and director-level training and individual career mentoring programmes.
  • For further information, visit our website: www.iod.com