All Members Circular - PENSIONS: LATEST DEVELOPMENTS AND RECOMMENDATION FROM THE EXECUTIVE COUNCIL

21 June 2013

TO:    ALL MEMBERS

Dear Brother/Sister

PENSIONS: LATEST DEVELOPMENTS AND RECOMMENDATION FROM THE EXECUTIVE COUNCIL

The Union’s work and campaigning to try to defend our pension rights continues. Our Conference in May debated the position at that time and agreed a new set of demands on Government. These were then set out in a new trade dispute which was sent to the relevant Ministers in all parts of the UK. The Emergency Resolution agreed by Conference was circulated to members in circular 2013HOC0249MW. It can also be read on the Union website.

The Union has always been clear that we are seeking to resolve the disagreements we have with Government over pensions rather see conflict over the issue. However, we have also been clear that we believe their proposals to be unfair, unworkable and unsustainable.  Our members through Branches and local committees have supported this approach but have made clear that should it become necessary we would embark on a ballot for strike action. This approach has been endorsed by our Conference.

Since Conference in May, discussions have continued with Ministers, civil servants and with specialist pension advisors. The time this has taken will no doubt have been frustrating for all concerned but the Executive Council has been clear that the negotiators acting on your behalf should seek to explore any and every possible means of improving the situation.

Devolution and the impact on pensions

The situation is further complicated by the fact that Fire policy, including pensions, is a devolved matter in Wales, Scotland and Northern Ireland. We are therefore dealing with four sets of Ministers at every stage of discussion.

The FBU has sought, and continues to seek, arrangements so that Firefighters in all parts of the UK should enjoy the same or similar pension arrangements. However, it is important to note that devolved powers mean that pension provision in the future may differ in different parts of the UK. To address this issue, Conference agreed that all discussions – in all parts of the UK - would be led by the General Secretary and be reported back to the Executive Council. This will strengthen our position in all negotiations by ensuring consistency. It will also ensure that the relevant Ministers in Wales, Scotland and Northern Ireland cannot avoid their responsibilities on these matters.

It is important to note that so far there has been no indication that anything different would be put in place in Wales, Scotland and Northern Ireland and that any new arrangements would generally follow those established in England by CLG. The discussions with CLG have therefore been central for all members in all parts of the UK.

It is also important to note that the attacks on pension are driven by Central Government at Westminster and that what is discussed with CLG or Treasury is therefore of vital importance to developments both in terms of policy and in terms of the funding of pension schemes in the future.

I am sure that members will appreciate that this makes all discussion at each stage very complicated.

Letter from Brandon Lewis

Following the most recent discussions, the FBU has received a letter from the CLG Fire Minister setting out proposals. This letter sets out what the Minister states is his ‘final offer.’  It is attached for your information.

You will note that:

•    The ‘final offer’ is made on the condition that it should be agreed by the FBU membership.

•    The Minister seeks a response to his letter by 12 July 2013.

•    This letter was copied to the relevant Ministers in Wales, Scotland and Northern Ireland.

The Executive Council discussed the letter and the latest situation on 20 June. The Executive Council agreed a Resolution on the subject which is attached to this circular.

Branches and FBU committees should now meet to discuss this latest situation, the letter from Brandon Lewis and the Executive Council recommendations.

The Executive Council was clear that it could not recommend that the proposals should be agreed. It was also clear that members should see and consider the letter from Brandon Lewis.  The Executive Council will reconvene in the week commencing 8 July in order to consider our response.

We are aware that pensions and the proposals to change them can be extremely detailed and on occasion confusing. We are therefore preparing a further circular/briefing which will explain the current proposals, how they have changed and what they mean.

This will be done as quickly as possible but please be aware that we also need to be accurate and some details may need to be checked with specialist advisors.

I attach to this circular:

•    The letter from Brandon Lewis setting out his offer.

•    The Resolution agreed by the Executive Council.

Further briefing material will follow as soon as possible.

Best wishes.

Yours fraternally
 

MATT WRACK
GENERAL SECRETARY

 

Executive Council resolution on pensions (20/06/13) following letter from Brandon Lewis

FBU conference in May debated developments in relation to pensions. This was followed by a series of discussions with government representatives.
On 19 June the FBU received a letter from the CLG Fire Minister setting out proposals. This letter sets out what the Minister states is his ‘final offer.’ This letter was copied to the relevant Ministers in Wales, Scotland and Northern Ireland.

The ‘final offer’ is made on the condition that it should be agreed by the FBU membership.

The Minister seeks a response to his letter by 12 July 2013.

The proposals do not adequately address the concerns set out by the FBU, concerns which are supported by significant research and evidence presented over the past two years.

Having considered all the details, the Executive Council cannot recommend agreement of these proposals.
This decision rests with members and the ‘final offer’ shall therefore be circulated for consultation through the union structures.
The Executive Council will reconvene during the week commencing 8 July to consider the outcome of this consultation.
In the meantime the union will continue to seek improvements to the position. This will include discussion in Scotland, Wales and Northern Ireland.

The Executive Council acknowledge the patience and determination of members and ask that all members participate in the consultation on this issue over the next two weeks.

Recommendations:
1.    The Executive Council recommends that the proposals from CLG should not be agreed.
2.    Following consultation, if the situation remains unacceptable, the Executive Council will act on the authority outlined in the Emergency Resolution on pensions.
 

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