The government acted unlawfully when it introduced a new civil service redundancy scheme without consulting trade unions, the high court has ruled.
The Public and Commercial Services union (PCS) launched a judicial review after the government revised the Civil Service Compensation Scheme (CSCS) with a view to saving £500m over three years. The changes, which affected payments and pensions, were due to come into force on 1 April 2010.
Delivering judgment in R (on the application of PCS) v Minister for the Civil Service, Sales J quashed the amended CSCS on the grounds the government failed to obtain the union’s consent, as required by the Superannuation Act 1972, s 2(3).
The PCS claimed the amendments deprived its members of accrued rights in respect of redundancy and early retirement. Its members took industrial action.
The background to the changes, Sales J said, was the “growing cost of pension provision as life expectation increases...constraints upon the public finances in current circumstances and a desire on the part of the government to reduce the costs of redundancy through restructuring of government departments”.
Richard Arthur, head of trade union law at Thompsons Solicitors, says: “The law says that the government can’t change redundancy rights which have already accrued for civil servants unless the unions agree...PCS did not agree to the new scheme and so it was found to be unlawful.”
