Submitted by SWFBU on
13 June 2014
TO: ALL MEMBERS
Dear Brother/Sister
PENSIONS: ANOTHER ROUND OF STRIKE ACTION FORCES DCLG FIRE MINISTER TO RELEASE INFORMATION BUT STILL NO IMPROVED PROPOSALS
FBU members showed enormous unity again on 12 June when they took strike action to defend their pensions from the Government attacks. On behalf of the Executive Council, I would like to start by congratulating you all and thanking you for all the solidarity and determination you have shown.
Discussions with DCLG since January – call to present new costed proposals
As you will be aware, the union (with technical advisors) has been discussing possible improvements with the DCLG Fire Minister, Brandon Lewis and his team since January 2014 and despite us suggesting areas he should look at we have still not been provided with any improved proposals.
A key demand we have raised in the run up to the most recent strike has been for DCLG to release any costings they may have and more importantly, to turn any such costings into clear formal proposals. DCLG have been clear that before any proposals could be made, they would need to have wider discussions within Government. It is absolutely and unarguably clear from this that proposals could only come from DCLG.
We know DCLG have been considering various options and we know that they have spent public money in costing these to see if they can be delivered within wider Government financial constraints. We have also assisted and encouraged them to look at various options by offering advice from our own actuarial/financial experts when necessary.
We have seen various options and we have had various issues checked by our own actuaries. Despite this, Mr. Lewis has not included all this material in his public consultation in relation to the proposed new pension scheme rules. More importantly, he has as not yet taken the step of formally offering any of the options as proposals that we can take to FBU members for consideration.
DCLG publication of various documents relating to pension discussions
On 12 June, after lobbying and pressure from FBU members and other politicians, Mr. Lewis finally published the various options he has been considering. We welcome this and it is clearly a result of campaigning by FBU members. The details can be found as an attachment to Mr. Lewis’ latest letter to firefighters at the DCLG website at:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/fil...
DCLG have also taken a slightly bizarre step by publicising various emails (or parts of them) and other documents (or parts of them). These documents have had various names and sections removed or redacted. DCLG have also published an incomplete set of ‘minutes’ from a meeting that took place in January.
These ‘minutes’ have never been shared either in this format or any other with the union. It is normal practice that minutes of meetings (and the processes for taking them) would be shared and agreed by both sides. That appears not to be the case at DCLG. We shall be raising this matter with Mr. Lewis and requesting a full copy of these and any other minutes he has in relation to any previous meetings we have had.
Don’t be distracted from real issues:
DCLG should present alternative proposals for FBU members to consider
Despite these distractions, the email exchange and the related documents are very important because they clearly illustrate that the Government is able to improve its position on flexible retirement options within its own constraints should it wish to do so. The Government is clearly able to make alternative proposals to the ones FBU members currently face. We have been clear to members that any alterations or improvements would be a matter for FBU members.
This is the point we have been making for several months: although Mr. Lewis has had this information available for some time, he has simply not made any revised proposal. Mr. Lewis clearly now has no excuse not to present revised proposals to FBU members.
Discussion with DCLG to improve the proposals
In this latest letter to firefighters (12 June) and in the attached email correspondence Mr. Lewis is trying to suggest that he was prepared to make a revised offer but this was de-railed by the FBU walking away from discussions. Nothing could be further from the truth.
As we have been reporting to members around the country for some months, we had been seeking improvements in key areas including contributions; protection; early retirement options etc. and had taken part in several meetings and discussions. Mr. Lewis confirmed that he may be in a position to make an improved proposal following preparations for the budget in March and as such we met with his team on the 19 March. We were also copied into a letter to DCLG from GAD on the 19 March confirming that the most favourable option with the lowest actuarial reduction that we had been discussing could be delivered within the Government’s cost ceiling but that it was dependent on Treasury approval. This letter appears as a redacted version in the correspondence distributed by Mr. Lewis on 12 June.
It is very important to note that this is a letter between two Government departments and at no time was it suggested that it was any form of proposal. Mr. Lewis seems to be suggesting that we should have shared this with members. This is extremely peculiar since the emails confirm that it was not an offer. To have suggested to members that it was a proposal would have been utterly misleading. Instead we recognised that the way to progress this was to urge Mr. Lewis to formally turn these options into proposals so that we had clear information and options for members to consider.
Meeting on 19 March
When we met DCLG on the 19 March DCLG officials confirmed that, as part of the budget, Treasury had issued a consultation that may affect their ability to make an improved offer. It was extremely disappointing to find out that at this stage Mr. Lewis had not even raised the issue with Treasury and that now it seemed that any potential improved position may be jeopardised as a result of other issues in the budget (‘Freedom and Choice in Pensions’). However, the union sought again to resolve this hurdle and met with Treasury and DCLG. This subsequent meeting provided the clarification that the ongoing consultation did not prevent Mr. Lewis and DCLG from making an improved offer should the Minister wish to do so.
Since this time we have been urging Mr. Lewis to seek Treasury approval and provide an improved set of proposals for our members to consider. This process also involved discussions with ACAS in an attempt to progress it.
Government attacks on pensions continue
To-date, despite the length of time they have had to seek and obtain this authority, Government have not provided any improved proposals. Instead they have increased employee contributions for a third consecutive year and commenced consultation on the 2015 scheme, indicating that it will be based upon the final proposals from May 2012 and will not include the options we have been discussing.
The Minister is now attempting to suggest that he was just about to make the proposals but we walked away from negotiations preferring to take strike action.
That is not only untrue but ludicrous and insulting. We have provided numerous opportunities for any improved position to be proposed. It has never arrived.
Now when we have taken action he is saying that he was ready to make an offer.
• The release of information by DCLG on 12 June is welcome.
• This release is as a result of the action of FBU members.
• The information released confirms that there are already alternative options available to Mr. Lewis.
• It confirms that he has had these options costed by Government actuaries.
• It confirms that he is able to make alternative proposals, which may improve on the current proposals for FBU members.
We have a simple message to Mr. Lewis: make an offer of revised proposals which improve the position for firefighters and we will consider it.
Nothing could be simpler.
Best wishes.
Yours fraternally
MATT WRACK
GENERAL SECRETARY
