Pensions the Focus
Thousands of firefighters are strike on through Monday night in the latest escalation over the Conservative government’s program to “reform” pension benefits for firefighters across the nation.
The crisis has continued for well over a year including shorter strike actions as the Fire Brigade Union (FBU) has fought to counter assertions that the current benefit levels and the cost to maintain them are neither reasonable nor affordable.
According to the union there are 46 separate firefighter employers.
The current retirement age is 55 and the new government program would push that to 60 with possible increases in employee contributions and decreases in benefits.
If instituted, the new proposal could amount to a 21.8% penalty reduction for firefighters electing to retire at 55 rather than 60.
In addition, the FBU says contribution rates could go from the 2011 percentage of 8.5 to 12.2 in 2015.
Pay-As-You-Go
UK public pension systems do not invest in the markets but are rather pay-as-you-go.
This may make actuarial calculation easier but misses the opportunity to leverage contributions and to fuel economic growth through investment in private equity.
The Union is in a long running battle over just how the terms of the modifications would affect members who are forced to work an extra five years but who may be unable to meet the physical requirements as they age.
US firefighter pensions seem by most metrics to be better with earlier retirement and more affordable contribution rates.
Striking
Firefighters on strike is not viewed as earth shattering in the UK as their cultural approach to trade unionism is more along the lines of union membership as a fundamental right.
Here in the US union membership is endlessly and bitterly contested as a way to weaken its power and scope.
Since employees are harassed into not joining a union or punished when they do, it makes the opportunities for strong action unlikely.
In America the notion of labor rights as human rights is largely one of aspiration while in the UK unions can continue to enjoy a status commensurate with their goal of protecting workers.
If firefighting is really a sacred calling so is ensuring the safety and well-being of those called.