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The Guardian - UK
The Guardian - UK
Business
Hélène Mulholland

Unions set to suspend strike action

Local government unions are set to suspend all further strikes over pensions after a breakthrough in talks earlier today.

Council bosses have agreed to consider a proposal which would see any savings made as a result of a controversial pension scheme change ploughed back into staff's existing schemes.

If the proposal is eventually approved, it could mean that eligible council workers will still be able to retire at 60.

Unions will now consult their membership about suspending further strike action to allow detailed negotiations to begin.

The decision will help ease fears that further industrial action would coincide with the May 4 local elections.

Election officers had been in talks with the government and the elections watchdog to put in place contingency plans following rumours that unions were considering disrupting polling day.

Two further strike days were already scheduled from April 25 as part of the second wave of action against the pension changes, after a successful one-day national strike two weeks ago.

Some 1.5 million members had been balloted over proposals to scrap the "85-year rule" for existing workers, which allows any staff whose combined age and years of service adds up to 85 to retire at 60.

The government insists the rule breaches age discrimination law, even though other public sector workers will still be able to retire at 60 after reaching a deal with former pensions minister Alan Johnson last year.

Despite the threat of continued disruption, the government refused to back down and laid the necessary parliamentary order to formalise the abolition of the 85-year rule from next October.

However, the government built in a flexibility which allowed further amendments to be made to the parliamentary order by the end of the summer.

This means that if the proposal to plough savings back into the pensions pot is agreed, the government could simply adjust the original wording without having to lay a new order.

Commenting on behalf of all the trade unions, the TUC general secretary, Brendan Barber, said the new round of negotiations offered a "positive route" to fairness, which he said would begin immediately.

"I am very pleased that it has now been possible to agree with the local government employers a sensible framework for the detailed negotiations necessary on the future of the local government pension scheme," he said.

"Those negotiations will focus on the proper protections for the pension arrangements of existing staff and the long term.

"The industrial action by workers covered by the LGPS demonstrated their absolute determination to secure pensions justice. To facilitate these negotiations it is being recommended that all the industrial action currently planned should be suspended."

Sir Sandy Bruce Lockhart, chair of the Local Government Association, welcomed the expected suspension of industrial action.

Local Government Association will be working hard in meaningful discussions with the unions to come up with a long term reform of the local government pension scheme that is fair to employees, continues to make local government an attractive place to work in and is affordable for council taxpayers."

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