Civil servants may strike, warns MP

Cuts in the amounts of redundancy payment to civil servants will see a rise in the number of strikes and legal challenges, ministers have been warned.

Labour’s John McDonnell, the MP for Hayes and Harlington, said the Superannuation Bill was the “worst example of industrial relations practices” seen in years.

Mr McDonnell criticised plans by the Government to limit the redundancy terms for thousands of civil servants, who could lose their jobs due to cuts in spending to help reduce the country’s huge deficit.

Under the plans laid out in the Bill, civil servants will receive one month’s salary for every year of service. This would be capped at 12 months for compulsory redundancy and 21 months for voluntary redundancy, with all civil servants entitled to a three-month notice period.

It would also see “significant protection” for lower-paid civil servants – anyone earning less than £23,000-a-year.

Civil servants on more than six times the private sector median earnings – currently around £150,000 – would have their salary capped at that figure for redundancy payments, which ministers say will bring an end to the “mega payouts” which had caused “offence to taxpayers”.

And those who had reached the minimum pension age of 50 would be allowed to leave early by surrendering the “appropriate amount” of any redundancy payment.

Cabinet Office minister Francis Maude told MPs the Government was “committed” to consultation with the trade unions and would always seek to reach agreement.

He said a report on consultations between the Government and the unions over future changes to terms and conditions for civil servants would be presented to Parliament, following Lords amendments.

But Mr McDonnell said of the Bill: “I can’t think of any better mechanism and actually inciting industrial action than this.

“In my view this will result in not just industrial relations deteriorating but I actually think it will enhance the potential for legal challenges.”

The Bill cleared its remaining parliamentary stages and is now heading for Royal Assent.

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