Wednesday 29 July 2015
The following statement was delivered to the States of Deliberation by the Deputy Chief Minister, Deputy Allister Langlois, on Wednesday 29 July 2015 in relation to public sector pension reforms.
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Sir
At the April meeting members considered a detailed report on the reform of public sector pension arrangements. Members gave overwhelming support to an amendment to that report which was proposed by me and seconded by Deputy Soulsby.
The purpose of that amendment was to provide the Association of States Employees' Organisations (ASEO) and the Policy Council with one, final, time limited opportunity to reach agreement on arrangements for the future service of current members of the public sector pension schemes. These further talks took place in the certain knowledge that if agreement was not achieved the Policy Council would submit an application to the Royal Court for a declaration that, as employer, it had the implied right to vary the terms of the schemes in a manner which affects members' rights without members' consent. In the event of the Policy Council obtaining that declaration it would then introduce for current members the arrangements approved by the States in April for new recruits.
I am very pleased to inform the Assembly that the period since 29 April has been productive - and that is due to a constructive approach adopted by the representatives from ASEO and, I would like to claim, Deputy St Pier and I who have represented the Policy Council as employer of all States Employees.
The last three months have been filled with meetings, both formal and informal, telephone and e-mail exchanges, at both political and staff level - all the procedures to be expected during negotiation. They have not been easy but they have been amicable and conducted with goodwill on all sides while each side robustly pursued the interests which they represented.
Sir, the purpose of the discussions can be stated quite simply. This is:
Firstly, to achieve arrangements in respect of the future service of current members which are sustainable and affordable for all taxpayers.
Secondly, to accommodate the aspirations and reasonable expectations of members of the schemes
The discussions have been wide ranging, encompassing all the major features of pension arrangements including:
- the speed at which pension entitlement accrues
- the age at which benefits will be paid
- the amount which the member and the employer contributes for those benefits
- variations for specialist groups
- favourable transitional arrangements for those closer to current pension age
- a framework for dealing with future unanticipated changes in costs - be they increases or decreases
The initial round of negotiations resulted in a common understanding document acceptable to both negotiating teams.
Now Sir, naturally, as with all negotiations, this has involved flexibility within the cost boundaries already established. I am pleased to report that this has resulted in an agreed position with representatives from ASEO. I have received a letter from the Chair of ASEO which reads as follows - I quote:
"The executive committees of the ASEOs constituent organisations have met to consider the current common understanding document and all unions recognise that significant movements have been made, and that this is the States' final position.
In response, a majority of unions representing a substantial majority of members are now prepared to recommend this to their members.
ASEO hopes that the States will similarly recognise the progress made and, noting the majority decision to recommend, allow the proposals to be circulated in order for consultation with members to take place pending a final decision".
So Sir what happens now?
Firstly, the full details of the proposal will be communicated to scheme members. That will be a joint exercise by ASEO and the Policy Council. States Members will be provided with the full details at that time.
Secondly, members of the individual constituent organisations of ASEO will be balloted on the proposals following their own union's rules of procedure.
The deadline in the amendment proposed by Deputy Soulsby and myself is that an agreement approved by ASEO scheme members be reached by 31 July. That agreement has been reached with employee representatives but has still to be put to all members. Furthermore, due to leave arrangements, August is not a practical time to conduct ballots if one wants a reasonable turnout on an important subject. Therefore, ASEO has proposed that their balloting procedures be conducted in September with results known by the end of that month.
In view of the significant progress which has been made since April and the confidence of both employee representatives and the Policy Council that these proposals will prove acceptable, the Policy Council has decided that it would not be appropriate to activate the process of seeking declaratory relief at this stage.
With the two negotiating teams having reached a common understanding, it is important that their joint recommendations to members are balloted in a measured atmosphere. States Members should therefore take great care regarding any public comments during that process so that members do not feel political pressure on their decision.
In concluding, I would once more like to record my thanks for the constructive approach adopted by the staff representatives. I trust that this will lead to the endorsement of the proposals by their members and, at last, implementation of arrangements which we can be confident are affordable and sustainable for taxpayers.
