Strike action inevitable unless employers change tack on pension cuts
12 January 2011
UCU said today that the board of the Universities Superannuation Scheme (USS) needed to properly consider the results of the union's consultation on changes to the USS pension scheme.
The union added that if the board ignored pension scheme members' views then industrial action would be inevitable.
The union has been analysing responses to its consultation on proposed changes to the staff pension scheme. In a ballot of over 31,000 USS members conducted by UCU, 96% said they did not support the employers' proposals to change the USS scheme.
On Thursday (20 January) the USS board will meet to discuss how it reacts to its own recent consultation exercise. UCU has called that consultation a sham and warned that unless serious changes are made to the original plans that universities will face widespread disruption through industrial action.
More than one in five USS members voted in the UCU referendum and have sent through their thoughts on how the scheme could be improved. The union said if press reports of just 5% of members responding to the official consultation are correct then it is simply inconceivable for the board to push the employers' plans through.
UCU's consultation revealed profound disquiet about all aspects of the employers' proposals. Many members were cross that any USS member who has a six month career break will be moved off the final salary scheme. They also raised concerns about plans to impose caps on inflation proofing.
The union says it has always recognised some changes are needed in order to ensure the stability of the pension fund and to protect members' benefits. Working from the evidence available of what the scheme needed, UCU proposed an increase in members' contributions, along with an increased retirement age for new entrants and a cost-sharing mechanism should future increases be required.
UCU general secretary, Sally Hunt, said: 'The poll of USS members we conducted gave straightforward results – there were over 31,000 votes; an overwhelming rejection of the employers' proposals. We remain unconvinced that the formal consultation has had any kind of similar interaction with the scheme's members or that it has any legitimacy.
'Our members not only voted against the package but also told us why they opposed the employers' plans. They are concerned about plans to move people off a final salary scheme, especially for people who have a short career break with the current threat of unemployment hanging over their heads.
'They have also made it clear that they back our opposition to the potentially punitive and unnecessary caps the employers have put on inflation proofing and the overly restrictive approach to allowing people to rejoin the final salary scheme following a break in service. It really is time for the board to think again. The employers' proposals have no legitimacy and if the USS board tries to push them through then strike action looks inevitable.'
The union has been analysing responses to its consultation on proposed changes to the staff pension scheme. In a ballot of over 31,000 USS members conducted by UCU, 96% said they did not support the employers' proposals to change the USS scheme.
On Thursday (20 January) the USS board will meet to discuss how it reacts to its own recent consultation exercise. UCU has called that consultation a sham and warned that unless serious changes are made to the original plans that universities will face widespread disruption through industrial action.
More than one in five USS members voted in the UCU referendum and have sent through their thoughts on how the scheme could be improved. The union said if press reports of just 5% of members responding to the official consultation are correct then it is simply inconceivable for the board to push the employers' plans through.
UCU's consultation revealed profound disquiet about all aspects of the employers' proposals. Many members were cross that any USS member who has a six month career break will be moved off the final salary scheme. They also raised concerns about plans to impose caps on inflation proofing.
The union says it has always recognised some changes are needed in order to ensure the stability of the pension fund and to protect members' benefits. Working from the evidence available of what the scheme needed, UCU proposed an increase in members' contributions, along with an increased retirement age for new entrants and a cost-sharing mechanism should future increases be required.
UCU general secretary, Sally Hunt, said: 'The poll of USS members we conducted gave straightforward results – there were over 31,000 votes; an overwhelming rejection of the employers' proposals. We remain unconvinced that the formal consultation has had any kind of similar interaction with the scheme's members or that it has any legitimacy.
'Our members not only voted against the package but also told us why they opposed the employers' plans. They are concerned about plans to move people off a final salary scheme, especially for people who have a short career break with the current threat of unemployment hanging over their heads.
'They have also made it clear that they back our opposition to the potentially punitive and unnecessary caps the employers have put on inflation proofing and the overly restrictive approach to allowing people to rejoin the final salary scheme following a break in service. It really is time for the board to think again. The employers' proposals have no legitimacy and if the USS board tries to push them through then strike action looks inevitable.'
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