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Civil Service Compensation Scheme (CSCS)

*An update will follow after 7th September, when the second reading of the Bill takes place in Parliament. Contact reps within your union or visit their websites to find out how to get involved and take action.*

Government Intends to Change the Law to Cut Redundancy Terms UPDATED 6th July 2010

Staff will have seen the letter from Director HR sent out today, outlining that the Government wants to "bring redundancy payments made to civil servants in line with best practice in the wider public and private sector."

The Minister for Cabinet Office, Francis Maude has explained that "the new coalition Government wants to proceed by negotiation with the unions.  Specifically, it wishes to have a permanent and sustainable new scheme, which is both appropriate to current times and also gives greater protection to less well paid civil servants.  The Government has today written to the Council of Civil Service Unions to invite them to discuss this."

Director HR's letter further states that "in order to secure the savings required in a time of extreme economic pressure and to create the basis for further negotiations in the light of the current deadlock, the Government has reluctantly decided that it has to begin the legislation process."

Legislation would limit the cost of future exit payments under the current (pre-reform) terms by:

Responding to today's announcement that the Government intends to change the law to cut civil service redundancy terms, PCS General Secretary Mark Serwotka's response can be viewed here.

Director HR Confirmation UPDATED 21st June 2010

Jean Lindsay, Director HR has confirmed via this letter to all staff that the current CSCS terms continue as they were before they were changed in April. 

Furthermore, it is confirmed that the Government is still considering the terms of the judgement and no decision has been made as to whether they will appeal.  However, an important point to note is that it is unlikely the old terms will continue unchanged for any length of time – this does not however, affect staff where terms have already been agreed.  The coalition programme states “we will reform the Civil Service Compensation Scheme to bring it into line with practice in the private sector”, and it is expectred that the Government will wish to pursue this policy intention as soon as possible and reopen negotiations with the Trade Unions.  However, the Government will announce its next steps after it has considered the terms of the judgement. 

Judicial Review Successful UPDATED 18th June 2010

Mr Justice Sales confirmed today that PCS was right to challenge the way the terms of the Civil Service Compensation Scheme, that governs redundancy payments, were slashed.

The decision quashes an amendment to the scheme that the previous Government had claimed was effective from 1 April and requires the new government to enter into negotiations with PCS if it wants to change the scheme in future.

While the judge quashed the detrimental changes to the scheme, he retained elements - relating to protection against age discrimination - that provide improvements. PCS says this shows it was not opposed to change on principle, but that any alterations had to be fair and agreed. The union’s challenge, by way of a judicial review, was heard over two days in April and the judge ruled on 10 May that the previous Government had acted unlawfully. Both sides were then given a few weeks to reach an agreement on the terms of an order to quash the amendment, but failed to do so, and the case went back to court for a final hearing on 9 June. The union always maintained the changes to the compensation scheme would have made it easier and cheaper to cut tens of thousands of civil service jobs and privatise more of our public services.

PCS Deputy General Secretary Hugh Lanning said: “We are delighted with the ruling that proves our members were right to oppose the cuts that the previous government tried to force through. “It’s rare for a High Court judge to side with a trade union, so we believe this vindicates our stance and our assertion all along that this was a grossly unfair attempt by the government to rip up the rights of its own workforce.

“The new Government now has a golden opportunity to show it is truly committed to consultation and negotiation by getting round the table with us to agree a new scheme that is fair and protects the rights of civil and public servants.”

Richard Arthur, head of trade union law at Thompsons Solicitors, who acted for PCS, said: “The ruling confirms that a Government cannot simply change redundancy rights that have already accrued for civil servants without agreement by the unions".

“With the exception of some favourable age-related changes, all the benefits in the new scheme are quashed and all the benefits in the old one are protected. The new scheme that was imposed on civil servants was simply unlawful.”

The ruling comes days before the coalition Government is expected to announce further cuts in public spending in its emergency budget next Tuesday (22 June).

PCS will hold events across the country on Tuesday, including outside the Treasury in Parliament Street in London between 12pm and 1pm, and will launch its Tax Justice and Jobs report that details how more than £120 billion is estimated to be lost to the economy every year through tax being evaded, avoided and uncollected.

Quashing Order UPDATED 26th May 2010

The judge will determine the terms of the quashing order, following the successful outcome of the legal challenge, on 9 June. In the meantime the new CSCS terms imposed on 1 April are not to be used in any form, whether on compulsory or voluntary terms.

Major Victory for PCS UPDATED 5th May 2010

Following the two-day judicial review hearing in the High Court in April, it was ruled today that the previous Government acted unlawfully when it introduced, without PCS’s agreement, a new redundancy scheme reducing the rights staff had accrued over time.

In what is a dramatic win for the union’s 270,000 public sector members, the judgement quashes a revised scheme that the government had sought to impose from 1 April. It means the new Government must reopen negotiations with the union if it is to agree a new arrangement that protects existing members’ rights.

Please visit the PCS Website and briefing for more information.

Legal Action 5th May 2010

PCS advise members that the national dispute over cuts to the civil service compensation scheme is continuing. Campaigning across the UK during the general election period is underway and a national overtime ban is in force. PCS want a negotiated settlement and are building up pressure so that the new Government elected on May 6 will come to an agreement with them. The Judicial Review was held on 22 & 23 April and the union is awaiting the outcome.

Please see the PCS Website for all updates relating to the campaign.

PCS Industrial Action UPDATED 26th February 2010

A majority of members voting in the national ballot have voted in favour of strike action by 63.4% to 36.6%, and in favour of action short of a strike by 81.4% to 18.6%. Please see the members briefing and PCS website for more information.

Agreement reached between the Cabinet Office, FDA, Prospect, POA, GMB and Unite. UPDATED 3rd February 2010

FC staff will today have received the letter from HR, a joint statement from 5 of the Civil Service Unions and letter from Sir Gus O'Donnell to all Civil Servants.

PCS continue to oppose the proposals and will ballot their members between 4th and 25th February.

Sir Gus O’Donnell, Head of the Civil Service, has called on PCS members not to vote ‘yes’ in the national ballot on action over the compensation scheme and has stated that other unions have accepted the changes to the scheme proposed by the government.

In response, PCS advise that:

"Despite previously saying that it had reached its ‘final position’, the government has, as Sir Gus says, moved from its original draconian proposals and offered some degree of protection to some existing civil and public servants. These concessions have been won by the resolute opposition of PCS members over 18,000 of whom emailed the Cabinet Office opposing the government’s plans to slash their entitlement to redundancy payments and by the lobbying amongst MPs carried out by the union, 138 of whom have signed an early day motion calling on the government to change course. The concessions would still leave many thousands of PCS members unprotected, however.

PCS represents almost three times the number of civil and public servants than the other unions combined. It is no surprise that the other unions have accepted the proposals. Some of them would have accepted even the original proposals and have since then argued for each new proposal to be accepted despite the detrimental effect on the majority of staff. 

But the latest proposals leave a very large proportion of PCS members unprotected. The details will be available on the PCS website. As a union which stands for fairness and solidarity, we have decided that we must continue to try to find a settlement which covers all our members, not just some.

Moreover, accepting such divisive cuts in so many people’s entitlements, as the other unions have done, would weaken the whole union and make job losses and compulsory redundancy much more likely at a time when we know that the major political parties are planning such cuts.

The latest proposals made by Cabinet Office were, in fact, conditional on PCS giving up its right to seek legal protection in the courts. We cannot accept that and we will press ahead this week with a judicial review along with NIPSA, a sister union.

We must continue to build pressure on the government to come to a fair agreement. PCS has identified ways the government could save money while also protecting members’ entitlements. Sir Gus says he has moved a considerable way from the original proposals made last summer. If we are united we can move him further towards a settlement that will protect all PCS members from redundancy.

We urge you to vote `yes’ to both questions in the ballot and ensure that Sir Gus sits down with PCS and talks about how to avoid a dispute, without crude attempts to divide us."

The Time To Act Is Now UPDATED 8th December 2009

As you will no doubt be aware by now the unions have had further talks with Cabinet Office to see if a resolution to the proposed changes can be found.  Unfortunately, no such solution has been forthcoming and the Cabinet Office therefore intends to proceed with the cuts to the compensation scheme with effect from 1st April 2010.

An impressive 115 MPs have signed an early day motion, which demonstrates that MPs are receptive to the lobbying carried out by our members, their friends, and the general public.  As a result, union members are again asked to lobby their local MP so that this number can be increased even further.

PCS has decided to ballot its membership on a campaign of national industrial action, with the aim of securing an agreement that would protect members entitlements under the CSCS, and provide for acceptable protection for members in the “nuvos” pension scheme not covered by the CSCS.

PCS will be again instigating a judicial review to halt the process by which the government seems intent in removing members’ accrued rights under the CSCS.

Remember, that as unions, we were successful in protecting our pensions and that we also managed to negotiate a no compulsory redundancy agreement through the protocols agreed between the unions and the Cabinet Office.
If we act now to ensure that politicians are aware that these changes are about to be implemented against the will of a vast majority of Civil Servants we could possibly prevent the need for industrial action, which is for us always a last resort. 

The impact upon the poorest paid civil servants will be immense if, as the two leading parties promise that, jobs in the Civil Service will be cut, and cut, and cut to offset the national deficit.  We need to ensure that those true public servants are not asked to pay the price of others excesses.

It is vital that all union members in the Forestry Commission write to their Westminster Constituency MP as soon as possible even if they have previously.  We need to tell MPs that the Cabinet Office is not listening; that if they continue on this course it could lead to industrial action by at least one set of trade union members. 

Please support your fellow union members, it is such a small thing to ask that you write to your MP, please take the time to do it today because by tomorrow it might be too late.

PCS to Launch Legal Action and Hold Strike Ballot 17th December 2009

PCS decided today to launch legal action with other unions against the government over unilateral changes to the Civil Service Compensation Scheme and hold a strike ballot amongst 270,000 PCS members working for the civil service and its related bodies.

The move follows a meeting of the union’s National Executive Committee who have written to the Cabinet Office minister, Tessa Jowell MP. The letter urges ministers to avoid legal and industrial action by ensuring officials honour ministerial promises to find a negotiated agreement.

The changes to the redundancy terms, which the union fears will lead to the government cutting jobs on the cheap, were unilaterally announced on 4 December and will see staff robbed of their entitlements if they are forced out of their jobs.

Ministers had promised to instruct officials to meet PCS and other civil service unions to discuss PCS concerns when they announced plans in July to cut the terms of the compensation scheme. But that ministerial commitment appears to have been undermined by senior officials, who have cancelled four scheduled meetings over the last two months.

If ministers press ahead with their plans and refuse to find an acceptable agreement that defends existing members’ entitlements, then they will need to lay an order before Parliament. This will trigger a ballot for industrial action of over 270,000 PCS members across the civil service and related bodies.

In the meantime, PCS in conjunction with other unions representing civil servants, will be mounting a legal challenge and seeking a judicial review over the changes.

Commenting, Mark Serwotka, PCS general secretary, said: "The government has an opportunity to avoid legal and industrial action by ensuring officials honour ministerial promises to make the changes through negotiation rather than imposition.

"Cancelling meetings with unions and unilaterally announcing changes has angered staff who will be robbed of their entitlements if they are forced out of their jobs. We have decided to mount a legal challenge with other unions representing civil servants and hold a strike ballot of over 270,000 PCS members working in civil and public services.

"Ministers need to honour their promises and come to an agreement with the unions to avoid a damaging dispute."

Changes Announced UPDATED 8th December 2009

Following the accouncement on 4th December, The Forestry Commission HR Department have issued a letter to all staff on further changes to the CSCS which are as a result of the Cabinet Office taking account of views expressed during the consultation period.

These unilaterally announced changes to the civil service compensation scheme which are be to be implemented in April 2010, have not been agreed with the civil service unions, despite the lengthy process of discussions and consultation that has taken place on this issue. All of the CCSU (Council of Civil Service unions) are outraged that the announcements have been made at the same time as a meeting was being held at the Cabinet Office.

No attempt has been made to reach an agreement despite previous ministerial commitments that talks would take place. This displays not only bad faith but a shocking lack of respect for civil service staff. In the meantime, we shall be consulting our lawyers on legal action to stop the process and demanding a meeting with Tessa Jowell, Cabinet Office minister.

As more information from the CCSU becomes available we will get it to you as quickly as possible. We would remind you about the previous e-mails that we have issued on this subject and would re-emphasis the need for you to write to your MP to express your anger at not only the original proposals but also this latest development in which your views have been ignored.

Writing to your MP 27th November 2009

We are calling on all members and supporters to write tol their MPs to oppose the proposed changes to the scheme. Please read this letter for advice on writing to your MP.

Update from FCTU Secretary UPDATED 26th November 2009

Allan MacKenzie has issued a letter to all staff in response to many members voicing their concerns on the lack of clarity on what is happening with the proposals.

Government Proposals Unacceptable

Members will be aware that Civil Service Unions have been in negotiations with the Cabinet Office about the scheme since the autumn of 2008. The published proposals have not been agreed with the unions.

PCS held a National Campaigns Liaison Group meeting in Clapham on 7th September to discuss the proposed changes to the CSCS.  Nearly 200 delegates turned up which reflects the seriousness of this issue.

Mark Serwotka the PCS General Secretary confirmed the recent NEC recommendations: -

  1. The NEC formally rejects the proposals on the CSCS and communicates this decision to the employer (Cabinet Office), members and Council of Civil Service Unions (CCSU).
  2. That a members’ circular on the CSCS proposal is issued immediately to ballot addresses
  3. That we seek to meet Cabinet Office ministers in order to make clear our objections and seek new proposals
  4. That we begin the process of challenging the Cabinet Office proposals in the courts by issuing preliminary letters to the employer in conjunction with other CCSU unions
  5. That the national campaign membership consultation proceeds, and we seek facility time for membership meetings
  6. That the consultation is preceded by a meeting of the National Campaign Liaison Group and by Regional reps briefings
  7. That membership consultation document is produced concentrating on the detrimental nature of the proposals
  8. That the September NEC considers a detailed formal response to the proposals on the basis of conference policy
  9. That a special NEC considers the results of the consultation and considers holding a ballot, either on the union’s policy or on industrial action if developments require that

Mark went on to say that PCS needs to move quickly to counter the employer’s propaganda and to begin the process of building a campaign aimed at upholding our policy, as agreed at the Annual Delegates Conference (ADC), of no detriment to members entitlements under the CSCS.

Furthermore the proposals amount to a cut in accrued and contractual rights to decent redundancy compensation at a time when we can clearly see that tens of thousands of Civil Service jobs are at risk over the next few years.  We now need to make it clear that they are unacceptable and that we will match the threat they represent by organising a large scale campaign which mobilises members to defend their terms and conditions.

Currently in the Forestry Commission we have members who are facing the prospect of leaving under the current terms and other members who face leaving at a later date being severely disadvantaged due to these proposals.  Any future redundancies will be at the proposed new rates and will be detrimental to all our members.

This is why you belong to PCS to fight to defend your jobs and your employment conditions.

Members' comments

Send your views to unions@forestry.gsi.gov.uk and if you like we can post them here for you.

I read a message from my union this morning in disbelief and wondered at first if it was some sort of hoax. I cannot believe that it would be possible for a Government to take unilateral action to change it's employees' conditions of service without putting a bill before parliament and undertaking a full and fair consultation with employees - and then actually taking notice of this.

At a time when the economy is struggling and many people are concerned about the security of the future for themselves and their families, it seems incredible that such a proposal to cut redundancy payments and conditions for early retirement - for the average employee - should be considered. If employees have to be made redundant, surely having a little capital to create small businesses and to continue to pay the mortgauge will help to bolster the economy and build it up from the bottom rather than create an increasing pool of needy unemployeed claiming off the state. This seems yet another example of robbing Peter to pay Paul.

Responses to the Consultation

To date 2267 PCS members have copied their union into their responses to the consultation on civil service compensation scheme. Some examples of the responses PCS have received are listed below.

I find the proposal to change the civil service compensation scheme and restrict redundancy payments completely unacceptable. Civil service compensation scheme is a key part of civil service terms and conditions and it is unacceptable that employees should have those terms and conditions rewritten after many years of service.
As an employee of the civil service I have entered into a contract of employment and whilst I continue to honour my commitments to my employer I believe that my employer should honour their commitments to me. Whilst I understand the need to make the civil service more efficient I think this is a particularly cynical way of achieving staff reductions at a much lower cost.

I am writing to strongly object to your proposals to reform the civil service compensation scheme on the following grounds:
a) The civil service compensation scheme is a statutory scheme under Section 1 of The Superannuation Act 1972. I understand primary legislation such as this can only be changed by parliament. As there is no bill before parliament to change Section 1 of The Superannuation Act 1972 I believe the proposed changes are unlawful.
b) Any proposed changes to the civil service compensation scheme as contained within Section 1 of The Superannuation Act 1972 have to be agreed with the civil service unions. It is my understanding that the Cabinet Office has been unable to agree the proposed changes to the civil service compensation scheme with the civil service unions. I therefore believe your proposed changes are unconstitutional and cannot proceed.
c) I have accrued rights under the civil service pension scheme. I believe that the government’s intention to remove those accrued rights is unlawful.
d) The proposed changes are promoted as being fair to the employer, employee and the tax payer. I believe the proposals to be grossly unfair as the proposals will lead to a loss of benefits to the employee.
e) I insist that you honour my existing civil service compensation scheme agreement.

I have recently received information from PCS, advising me that the compulsory redundancy scheme is being reviewed. May I advise that after 32 years of loyal service, I am appalled that my employer is considering reducing my entitlement for redundancy payments by such a huge amount?
The contract I signed in 1977 provided me with preserved rights and this agreement should be honoured regardless of whether or not the entitlement is changed for newer members. I hope any changes will reflect the hard work and loyalty that is provided by long standing employees of the government. I object to the changes as detailed in the proposals and insist that all existing contracts should be honoured as well as negotiating a fair scheme for new entrants in the same way that the pension's scheme was renegotiated for new entrants in 2005.

This is not ‘Fairness for all’ it discriminates against those with long term service and it is yet another case of ‘changing the goalposts’.

Existing contracts must be honoured and a good scheme needs to be negotiated for new entrants in the way that pensions were negotiated.
I wish to record my views on the above subject, in that the government should honour existing contracts and negotiate a good scheme for new entrants in the same way undertaken in 2005 for the pensions. As someone who is in the criteria who began work before 1987 with reserved rights, now aged 46 with 26 years service is entitled to £106,000. My new entitlement would be £48,000. This is completely unfair and a breach of my existing contract.

I am horrified to read of the proposed changes to the benefits provided under the civil service compensation scheme. These seem very much designed for the sole purpose of making civil servants redundant on the cheap. I signed a contract of employment in good faith and trusted that my employer did likewise. To come along and change my contract of employment is nothing more than bullying, of the most perverse kind. The only reasonable course of action is to honour existing contracts and to negotiate an acceptable scheme for new entrants.

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