Commenting on the latest public sector strikes, Mark Littlewood, Director General of the Institute of Economic Affairs, said:
“The truth is that those striking today are disproportionately the protected, privileged and well paid. The issue at stake is whether those in relatively well paid jobs in the public sector should continue to have their enormously generous pension arrangements so heavily subsidised by those in the productive, private sector who earn less.
“Only if you believe that hairdressers, waitresses and bar staff should pay for the comfortable retirement of headmasters, police inspectors and doctors, could you sympathise with the industrial action being taken today.
“The government must not make any further concessions to the unions. They have already moved too far. The concessions made earlier this month will cost future generations around 3% of the cost of the public sector payroll. Currently, public sector pensions are worth a minimum of 40% of public sector worker's salaries.
"The unions must accept that reform is essential.”
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Notes to editors
The true cost of public sector pensions and detailed policy recommendations were made by the Public Sector Pensions Commission (initiated by the Institute of Economic Affairs and other groups) in its report Reforming Public Sector Pensions: Solutions to a growing challenge. Please contact us for more information about the Commission.
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