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Pension strikes could costs jobs, say ministers Pension strikes could costs jobs, say ministers
(40 minutes later)
Widespread public sector strikes next week could cost the economy £500m and lead to job losses, Cabinet Office Minister Francis Maude has said. Public sector strikes next week could cost the UK £500m and lead to job losses, say ministers - as unions accuse them of "fantasy economics".
Mr Maude said the Treasury had made the estimate based on lower output in the public and private sector. The Treasury made the estimate based on lower public sector output and knock-on effect on the private sector, including closed schools.
He said: "If you lose a big chunk of output, it's hard to see how that doesn't translate into lost jobs." The PM's spokesman said there was "no question" large-scale strikes over pension changes would hit the economy.
More than two million workers are expected to strike on 30 November over changes to public sector pensions. More than two million workers are expected to join action on 30 November.
There has been deadlock between the government and unions over pension changes, despite months of negotiations.There has been deadlock between the government and unions over pension changes, despite months of negotiations.
Classrooms closedClassrooms closed
Unions say their members will be left worse off by proposals which will require them to work longer before collecting their pension and having to contribute more - but the government says change is needed, to keep down the cost to the taxpayer as people are living longer.Unions say their members will be left worse off by proposals which will require them to work longer before collecting their pension and having to contribute more - but the government says change is needed, to keep down the cost to the taxpayer as people are living longer.
The BBC has learned that civil servants from across Whitehall are being lined up to fill in for border staff at UK ports and airports on the day, amid fears of major disruption for travellers.The BBC has learned that civil servants from across Whitehall are being lined up to fill in for border staff at UK ports and airports on the day, amid fears of major disruption for travellers.
On Wednesday the prime minister urged employers to allow their staff to bring their children to work, if it is safe to do so, predicting that the strike would close "most of the classrooms in our country". On Wednesday the prime minister urged employers to allow their staff to bring their children to work, if it is safe to do so, if their schools are closed.
At a briefing on Thursday, ministers said they expect two thirds of schools to close, and although clinical and medical staff in hospitals will work - the British Medical Association and Royal College of Nursing are not taking industrial action - some staff in hospitals will be on strike which would cause some delays.At a briefing on Thursday, ministers said they expect two thirds of schools to close, and although clinical and medical staff in hospitals will work - the British Medical Association and Royal College of Nursing are not taking industrial action - some staff in hospitals will be on strike which would cause some delays.
But they said they would not be calling on the Army to step in and were not expecting emergency services to be hit.But they said they would not be calling on the Army to step in and were not expecting emergency services to be hit.
Earlier this month the government came forward with a revised offer - which would guarantee no-one within 10 years of retirement would have to work longer or see their pension income fall and includes the promise of more generous rates of accrual - the rate at which the value of a pension builds up. Chief Secretary to the Treasury Danny Alexander said the £500m figure was a "reasonably worst case scenario" - based on the impact of all members of the unions who balloted over the strike not turning up to work. It took into account the knock-on effect on the private sector, such as parents who had to find childcare.
'Worst case scenario' Deal 'within grasp'
On Thursday Chief Secretary to the Treasury Danny Alexander said there was "no more money on the table" to settle the dispute and the government had made a "very good offer". He described it as a "self inflicted wound to the British economy" adding: "That is a loss we can ill afford at what is a very very difficult time for our economy overall."
He told the BBC the £500m estimate was a "reasonably worst case scenario" - based on the impact of all members of the unions who balloted over the strike not turning up to work. It took into account the knock-on effect on the private sector, such as parents who had to find childcare.
He urged union members to look at the deal the government is offering to see how their pensions would be affected - and said he believed a resolution that would be a good deal to both public sector workers and the taxpayer was "within our grasp".He urged union members to look at the deal the government is offering to see how their pensions would be affected - and said he believed a resolution that would be a good deal to both public sector workers and the taxpayer was "within our grasp".
BBC News Channel chief political correspondent Norman Smith said ministers had not said how many jobs could be lost. BBC News Channel chief political correspondent Norman Smith said ministers admitted they could not say how many jobs could be lost.
Cabinet Office Minister Francis Maude said: "If you lose a big chunk of output, it's hard to see how that doesn't translate into lost jobs."
The prime minister's official spokesman said: "There is no question the strikes will have an impact. It is not costless, if lots of people can't go to work because they have to look after kids, that has an impact on output. That is a fact."
But the figures were immediately questioned by TUC general secretary Brendan Barber: "While the strike on November 30 will obviously cause disruption, the figures suggested by ministers are fantasy economics.
"This is the clearest sign yet that next week's autumn statement will be a damp squib and the government is using the strike as yet another desperate excuse.
"Blaming the weather, the royal wedding and now scapegoating hard-working teachers, nurses and dinner ladies for the UK's economic woes is pretty poor from a government that has presided over record unemployment and the weakest economic recovery for a century."
Earlier this month the government came forward with a revised pensions offer - which would guarantee no-one within 10 years of retirement would have to work longer or see their pension income fall and includes the promise of more generous rates of accrual - the rate at which the value of a pension builds up.
On Thursday Mr Alexander said there was "no more money on the table" to settle the dispute and the government had made a "very good offer". There have been suggestions that revised offer could be withdrawn altogether if no deal is agreed by the end of the year.
Mark Serwotka, head of the Public and Commercial Services Union told the BBC the changes were unfair, the government was making "false" claims about public sector pensions and their plans would force people to "work longer, pay more and get less".Mark Serwotka, head of the Public and Commercial Services Union told the BBC the changes were unfair, the government was making "false" claims about public sector pensions and their plans would force people to "work longer, pay more and get less".
"Rather than plan properly for 30 November, they've been engaging in a PR exercise, putting out misleading information to try and force through damaging changes that are unfair," he said.
"They could stop this strike even now, instead of scratching around trying to put untrained people on the front line, they should say today they want urgent talks to try and resolve the dispute.""They could stop this strike even now, instead of scratching around trying to put untrained people on the front line, they should say today they want urgent talks to try and resolve the dispute."