Thursday, 1 December 2011

Public Pensions - Told You So!

So the November 30th strike has come and gone. Pre-empted, some will say, by the Chancellor's Autumn Statement the previous day announcing a 1% cap on public sector pay rises (private sector pay rises currently average 2.5%).

My last blog stressed the need to look at the whole picture of public sector employment, not pensions in isolation, and criticised government's neglect of basic good management principles. As if to prove my point they further constrain pay - but only for the public sector!

I'm not disputing the need to control public spending, but why not cap pay rises for all employees - public, private and third sector? This could achieve two extra benefits:

  • Support Cameron's claim that "we're all in this together"



  • Stimulate private sector growth by helping to control business costs


It's been done before of course - remember the incomes policies of the 60s and 70s when inflation was the enemy?

Same idea, just a different target. And it might just reduce the sense of injustice that fuels public sector anger.

 

Check my web site at www.real-improvement.com for more information and ideas.

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