Wednesday, May 12, 2010

Unions warn of Greek-style riots in Britain against public sector cuts after court victory over capping of redundancies

Militant unions today sent a chilling warning of Greek-style strikes and protests after winning a major legal victory for civil servants made redundant.

The warning raises fears of months of chaos triggered by a furious public sector who refuse to accept painful changes to tackle Britain's financial crisis.

With one in five workers employed by the State, the scale of the crisis could be crippling with unions warning of a 'tidal wave' of strike action.

The Public and Commercial Services Union signalled the nightmare facing the future Prime Minister who tries to wield the axe.

Greek riot police

Predicting a riot: Left-wing Labour MPs and trades unions said they would organise Greek-style resistance to what they called the 'incoming coalition neoliberal government'

The Cabinet Office had been trying to cut a gold-plated redundancy deal for civil servants which it described as 'out of date and more expensive than almost any other available.'

But a High Court judge ruled today that Labour had acted unlawfully, and that the cost-cutting changes to redundancy payments must be scrapped after failing to get the union's approval.

The terms of the old redundancy deal was extraordinarily generous, with some long-serving civil servants eligible to get about six years' pay if they joined before 1987.

For example, a 46-year-old earning £24,000 who had been a civil servant for 25 years could enjoy a cash payment of about 6.2 years' salary, or about £150,000.

Under the new deal, the civil servant would still be eligible for a generous deal of £60,000.

By comparison, a private sector worker who earns the same money and has done the job for the same length of time would get just £8,360 under statutory redundancy rules.

Greek chaos

Greek chaos: One of the survivors is pulled out of the fire-bombed Marfin Egnatia Bank by firefighters in Athens last week

General secretary Mark Serwotka said his 270,000 members, who staged three days of strike action in March, 'refused to sit back and watch their terms and conditions being ripped up.'

He said: 'We will now be knocking on the door of the next government to remind ministers they are legally obliged to reach an agreement with us.

'If they do not meet their obligations, the union will have to consider further industrial and legal action.'

It comes amid tough warnings from other unions that any cuts will be fiercely opposed by a public sector which employs a record 6.1million people.

Left-wing Labour MPs and trades unions said they would organise Greek-style resistance to what they called the 'incoming coalition neoliberal government'.

'There is no popular mandate for cuts and, as in Greece, any attempt to impose them will be firmly resisted,' they said.

John McDonnell

John McDonnell: ' The left and trade unions will be forging a coalition to resist attacks on our communities'

Labour MP John McDonnell, chairman of the left-wing Labour Representation Committee, said: 'The public and private horse-trading masks the fact that whatever government emerges will be somewhere on the neoliberal spectrum, and will soon be driving through large scale cuts in public services, pensions and benefits.

'To face a neoliberal coalition government, the left and trade unions will be forging a coalition to resist attacks on our communities.'

Dave Prentis, general secretary of Unison, warned: 'Unison will fight tooth and nail to defend our public services, oppose more privatisation and any attempts by the new government to attack our members' pay.

'We will fight for the hundreds and thousands of jobs that are in imminent danger. We will support our members forced into taking action to protect services and jobs.'

The firefighters' union also warned that it will oppose any cuts and promised to fight 'as never before'.

Matt Wrack, general secretary of the Fire Brigades Union, said: 'We do not believe that people voted to see their emergency and other essential public services cut, to pay for the banks bail out.

'We will fight to stop our service from being cut to pieces. Local communities and workers in the public services will need to fight as never before to defend our vital public services.'

Yesterday the University and College Union said it is balloting its members over plans to change the gold-plated pension enjoyed by academics.

Under the changes, academics could be forced to pay more money into the scheme and work for an extra five years. Unions say the pension is 'deferred pay' for its poorly paid members.

General secretary Sally Hunt said: 'We cannot rule out the possibility of industrial action to protect our members’ pensions if the employers continue with their intransigent position.'

Bob Crow, general secretary of the Rail and Maritime Transport union said: 'When the British people realize just how seriously they have been misled by the political elite over the attacks on living standards and public services that have been kept under wraps, it will unleash a tidal wave of strikes and public protests that will mirror the growing resistance on the streets of Athens.

'Whatever deals are stitched together, the budget cuts will top the agenda of whoever grabs the levers of power.

'The billions in bankers' bail outs has been creamed off, chewed up and will be spat back in our faces in public spending cuts. There is no question there will be a fight back on a massive scale.

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