City Matters 132

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18 August - 14 September 2021 | Page 5
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TfL facing more strikes
over staff pension row
LONDON could be hit by more strikes
later this year as a leading transport union
announces plans to oppose a review into
TfL’s pension scheme, writes Joe Talora,
Local Democracy Reporter.
Just days after calling off planned walkouts
this week over a decision to scrap the
pay grade of Night Tube drivers, the RMT
union has announced that it is launching a
campaign to resist changes to TfL’s pension
scheme “using every option available to us,
including a determined campaign of strike
action”.
As part of the Government’s £1.08 billion
emergency funding deal agreed in June,
TfL was required to launch a review into its
“generous” pension scheme in a bid to cut
costs.
But RMT general secretary Mick Lynch
has said that the review is “a smoke screen
for a massive attack on RMT members” and
the union has declared no confidence in
the review process.
Mr Lynch said: “RMT will fight any
attempt to impose detrimental terms onto
our members. We will resist any attempt
to make members work longer, increase
pension contributions of workers – just
a pay cut in disguise – reduce pension
payments or undermine the fund in the
long-term by closing it off to future staff.
“Our members in TfL kept transport
services running throughout the pandemic
and were hailed as heroes. Now their reward
is the threat of poverty in retirement.
“We have absolutely no confidence in the
review process set out, which is no more
than a smoke screen for a massive attack
on RMT members driven by the government
and London Mayor’s agreement to
make huge financial cuts on TfL and LUL.”
The union has also urged TfL to bring all
regular work “in-house” and has called for
an end to “gravy train of easy profits and
dividends to the shareholders of the private
sector”.
TfL currently outsources work such as
cleaning, track maintenance and fleet
maintenance to private contractors.
Last week, TfL commissioner Andy
Byford announced that former Trades
Union Congress general secretary and
current ACAS chair Sir Brendan Barber
would lead the “truly independent” review
into TfL’s pensions.
Speaking at a TfL board meeting, Mr
Byford said: “We are working 24/7 to
reduce the (funding) gap to keep London
moving. Part of that budget, of course, is
the conditions imposed on us by Government
as a result of the most recent funding
deal. And one of those elements was the
need to review – and I stress that word –
review the TfL pension.”
He added: “This is a truly independent
review, there is no predetermined
outcome. The panel will do their work and
we’ll report back in due course.”
Published last week, TfL’s revised budget
for 2021/22 showed a funding gap of £500
London Underground
million remaining for the current financial
year, despite an overall reduction in estimated
funding requirements compared to
March’s budget.
TfL has said that the review into its
pension arrangements will identify and
recommend options that are both fair to
taxpayers, customers and employees and
financially sustainable and affordable in the
long term.
A spokesperson for TfL said: “TfL’s funding
agreement with Government included a
requirement to carry out an independent
review of the pension scheme, with the aim
of moving TfL’s Pension Fund into a financially
sustainable position which protects
members’ pension benefits built up to date.
“Sir Brendan Barber has agreed to independently
lead the pension review and will
bring a wealth of experience having been
a former General Secretary of the Trades
Union Congress (TUC) and until recently
serving as the Chair of the Advisory, Conciliation
and Arbitration Service (ACAS).
“Sir Brendan will be supported by Joanne
Segars OBE, in independently conducting
the Pensions Review. Joanne has expertise
in pensions, as the Chair of NOW:
Pensions, one of the UK’s largest auto
enrolment pension providers and Chair of
the Joint Expert Panel on the Universities
Superannuation Scheme.”
350,000 Londoners
still on furlough
NEARLY 350,000 Londoners were still on
furlough at the end of June despite the
imminent easing of lockdown restrictions,
according to new Government figures,
writes Joe Talora, Local Democracy
Reporter.
Although the number of employees on
furlough decreased from May to June,
London still has the highest take up of the
Government’s Coronavirus Job Retention
Scheme, with nine per cent of eligible jobs
furloughed compared to seven percent
nationally.
Nine of the ten local authorities in England
with the highest take up of the furlough
scheme are in London, with Newham and
Hounslow the highest at 12 per cent.
Barnet, Brent, Ealing, Haringey, Hillingdon,
Redbridge and Waltham Forest make up the
other boroughs with the highest numbers of
furloughed employees.
But with all legal COVID restrictions now
lifted as of July 19, the furlough scheme is
set to wind down before being phased out
entirely in September.
A spokesperson for Mayor of London
Sadiq Khan has said that the scheme is still a
“vital lifeline” for nearly 350,000 Londoners,
and that there is still the risk of a “cliff edge”
once the scheme winds down.
Mr Khan’s spokesperson said: “A reduction
in the numbers using the scheme can only
be truly welcomed if it is accompanied by
proof that Londoners are able to return to
secure work and ministers commit to longerterm
support for businesses – especially
those in the hospitality and culture sectors
that do so much to support the London
economy.
“This weekend the furlough scheme
tapers off further before approaching a cliffedge
in September. We cannot allow those
who still rely on the scheme to be forgotten.”
Across England, the accommodation and
food services sector has the highest number
of individuals furloughed, while London
has a disproportionately higher number
of people on furlough in the construction
industry compared to the rest of the country.
Nick Bowes, chief executive of the Centre
for London thinktank, has warned that
London’s economy is “particularly delicate”
and that there are “huge challenges”
remaining despite the lifting of lockdown
restrictions.
Mr Bowes said: “London still continues to
have a disproportionate number of its workforce
on furlough compared to every other
region in the country, as well as the highest
unemployment rate.
“While the furlough rate in the capital has
fallen, there are still huge challenges for
getting central London back on its feet given
it is hospitality, arts and construction workers
who are most likely to still be on furlough.
“What we also don’t know is how many of
those who are no longer on furlough have
returned to their jobs or how many might
now be out of work.
“Central London’s economy is particularly
delicate at the moment, and the government
needs to recognise that a slower recovery
for London will risk the whole country’s
recovery too.”
The latest figures from HM Treasury reveal
that, as of June 30, there were the fewest
number of people on furlough since the
pandemic began, with around 500,000
fewer people furloughed compared to May.