Unions calls for compulsion in pensions
The general secretary of the GMB union has called on the Government to be “bold and radical” on pensions and to introduce compulsion.
Though the Government has promised to act on pensions security, it has stopped short of any compulsion element, partly for fears of “nanny state” jibes.
Addressing delegates at the Labour Party conference in Brighton, Kevin Curran called on the Government to take “bold and imaginative steps to tackle the pensions crisis”.
Speaking in the debate on “building prosperity” he told the conference floor that “we need firm commitments to take to the electorate” who are increasingly worried about their security in retirement.
He attacked the policies of the Conservative Party as “pro-market and anti-welfare” and a “morally bankrupt package which promises nothing but misery for pensioners”.
Though he welcomed Labour’s promises to increase worker representation on pension trustees’ boards to 50 per cent, and to give trade unions the right to bargain over pensions, Mr Curran called for the Government to move from plans to actuality.
He argued that the voluntary system has “failed” and that moving to compulsion would be both “vote winning and socially responsible”.
Jack Dromey, deputy general secretary of the Transport and General Workers’ Union (T&G) also joined in the calls for compulsion – but compulsion on the employers’ side.
Mr Dromey told the conference floor that the announcement of a Pension Protection Fund, and an assistance fund for those who have lost their pensions through no fault of their own was welcome. However, he said that the £400 million committed by the Government so far is not enough, and the funds need to be “fully funded so that they can protect and compensate every worker”.
He called for industry to put its hand in its pocket, saying that “private greed created the problem” and there must be compulsion on employers to contribute to “decent occupational pensions”.
Concluding, Mr Dromey issued a rallying call for activists, saying: “If you want to look forward to a life after work. then join a union and vote Labour for a historic third term which ends the pensions crisis”.
