Council workers last night agreed to call off strikes that could have disrupted public services this month, raising fresh hopes of an agreement in their bitter dispute over pensions.
Last month around a million staff took part in the biggest walkout since the 1970s, closing schools, libraries, crematoriums and road tunnels and disrupting other local authority services. Another was due on April 25, just over a week before the local elections on May 4.
But yesterday unions announced they would suspend the industrial action to allow further negotiations and issued a joint statement with the Local Government Association, which represents employers, on the basis for the talks.
Union leaders accept that the retirement age for new staff will rise from 60 to 65 but are angry about the government's decision to abolish the "rule of 85", which allows staff to retire at 60 if their age and length of service adds up to 85 years.
In the statement they committed themselves to change, while the LGA accepted their proposal that 50% of the savings from abolishing the rule of 85 should be reinvested in the scheme.
Workers are unhappy that other public sector employees, such as Whitehall officials, health workers, firefighters and teachers, have kept their full benefits.
"The industrial action by workers covered by the LGPS demonstrated their determination to secure pensions justice. These negotiations now offer a positive route forward to secure fairness and high-quality pensions for all workers," said Brendan Barber, TUC general secretary.
Phil Woolas, the local government minister, said: "Talks ... on a nothing ruled-in, nothing ruled-out basis, can address the issue of protection for existing scheme members, recycling of savings, and the development of a more equitable scheme.
"Government has made clear we stand prepared to reflect any agreed proposals which emerge from discussions between employers and trades unions before the summer recess in further regulations."
Sandy Bruce-Lockhart, chairman of the LGA, said the suspension was a relief to employers and workers as well as those who used services. The LGA and unions would work hard to find a solution to the pension scheme that was fair to employees as well as affordable to taxpayers.
But Eric Pickles, shadow minister for local government, said postponement was not a solution.
He added: "Last year, John Prescott fudged public pensions ahead of the general election. Facing strikes before this year's local elections, he's kicked the issue into touch yet again."
