A political strike

Stephen posted on November 30, 2011 08:32

Wednesday 30th November sees a blatantly political strike, aimed at destabilising the democratically elected coalition government and reinforcing the position of a weakened union leadership. If this sounds a little harsh, ask yourself – or better still the union leaders – how many of their members actually voted for this action (as opposed to how many activists who voted, did so).

More importantly, ask the  union leadership who they think will pay for the ever rising cost of public sector pensions, if the proposed changes are not made. They are likely to argue that the costs are affordable without a delay in retirement age, increased member contributions and changed accrual basis. There is always some set of statistics that they can quote to support such an economically naive viewpoint, but these are usually based on error and wishful thinking.

The fact is that the country is facing a difficult future and there is no reason why one sector of the economy should be subsidised by the rest of us. We do not owe them a living, any more than they do us. It is time for us all to remember that.

Do the public support the strike?
Whatever the BBC may say – following its own political agenda – about high levels of support for the strike, research of this nature always  depends on what questions are asked and how. A few days ago, research for The Sunday Times by the highly respected YouGov survey suggests that 61% of people oppose the strike – and 56% believe that a strike should only be called if 50% of union members vote for such action, rather than 50% of those actually participating in a vote

Will most public sector workers be worse off?
The simple answer to this is probably yes, at least to some extent, although the protection offered for many lower earners and those close to retirement. Actually, a change to career average earnings as a basis for benefit calculation could actually leave some better off.

Waiting longer for retirement – and paying a higher contribution rate – will, of course, involve pain; and it is not the workers’ fault that the economy has suffered so severely, is it? Well actually, anyone who was involved in supporting governments that spent money they didn’t have – and borrowed personally well beyond their own means to repay – contributed directly towards the problems we face today.

There are probably millions of public sector workers who fall into neither category and they deserve our sympathy for the potential delay they will experience in waiting for their pension. But everyone else is having to wait for the basic state pension too (more so, thanks to an announcement yesterday); and few private sector workers have anything like the same pension rights as public sector workers.

Even if they do, they probably contribute a higher proportion of their income, in any event.

Weak unions
The real reason for this strike could well be that trades unions have been marginalised – for many years – by the success of their predecessors’ activities in making the UK a better and safer place for people to work in. They have historically enjoyed justified credit for combating poor – even dangerous – working practices.

The problem is that to survive today, very highly paid union leaders need to demonstrate that they offer value-for-money to their members; yet cannot apparently do so without leading them into potentially self-destructive strikes that will harm the economy and threaten their own jobs. It would be better for them to focus on other important issues such as social welfare and justice.

Professional advice is essential
When it comes to looking after our retirement planning and investments, vigilance and professional advice are essential. If you are wondering what to do, contact Robert Bruce Associates for individual assistance.

NOTHING IN THIS ARTICLE SHOULD BE SEEN AS GIVING INDIVIDUAL FINANCIAL ADVICE.

Related Posts

Investors flock to ethical investment

Investors flock to ethical investment  Investing with awareness of …. View Blog Entry

Turmoil allows gold to increase its allure

    Throughout history, gold has been seen as …. View Blog Entry

Review your options when you retire

If you’re coming to the end of your working …. View Blog Entry