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BeeHive  >  BeeLines  >  2008  >  Sep  >  Are Pensions Electric?

Are Pensions Electric?

Well the conference season is almost upon us.  The TUC Conference kicks it all off on 8th September in Brighton; then it’s the LibDems’ turn in Bournemouth on the 13th; Labour next in Manchester on the 20th; and finally to the Conservative Conference in Birmingham at the end of the month on the 28th.  Gone are the days when I would appear at as many fringe meetings on pensions as I could in an effort to keep the great debate going.  To be honest I don’t really have the energy these days and, anyway, apart from the highlight of having a minister walk out on me once I don’t think it ever achieved that much.   But don’t worry, it looks like pensions will loom large at this season’s events whether yours truly is involved or not.

Things have started warming up already on the pensions front with the GMB trades union tabling an emergency motion at next week’s TUC Conference. It is all to do with the statutory pension protection that was given to power supply workers when the gas and electricity utilities were privatised way back at the beginning of the 1980s.  I’m sure you’ll be hearing a lot more about all of this in the weeks to come, so I thought it might be good background for you to read the (short) text of the motion which Ms Bruun has kindly dug out cyberspace for you. 

Here it is:

"Congress notes that Ofgem, the regulator for the gas and electricity markets, recently issued a consultation document "Price Control Pension Principles" signalling its intention to implement changes that will adversely affect the pensions of thousands of workers in the gas and electricity industries. Congress notes with dismay that Ofgem's proposals include removing statutory protections for pensions implemented when these utilities were privatised in the 1980s. Congress further notes that Ofgem’s concern about workers’ pensions contrasts sharply with its lack of interest in curbing excessive 'fat-cat' salaries and dividend payments to executives and city shareholders.

Congress believes Ofgem’s proposals will have a far-reaching impact upon the pension rights of employees, without bringing any substantial benefit to hard-pressed consumers struggling to meet their energy bills. Congress categorically refutes any suggestion that the pension schemes of companies in the gas and electricity industries are the cause of soaring energy prices.

Congress wholeheartedly condemns this attack by Ofgem, which represents an attempt to scapegoat gas and electricity workers as an alternative to Ofgem taking the decisive steps necessary to help lower energy prices and protect consumers. Congress believes that this is indicative of Ofgem’s dismal lack of will and ability to address the obvious failings of the energy market.

Congress calls upon the government to instruct Ofgem to abandon these ill-conceived and unnecessary proposals, and to focus instead upon taking effective regulatory action, aimed at reducing the growing numbers of people in fuel poverty by addressing the real causes of high energy prices."

4 September 2008

Source: www.gmb.org.uk

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