CBI call for further civil service job cuts set to trigger war with trade unions

The CBI  is on a collision course with trade unions over the ongoing dispute across the Civil Service – after calling for even more government cost-cutting.

The employers’ body has told the government that, far from backing down in the face of industrial action, it should axe even more jobs.

Now the CBI is heading for a showdown with the Public and Commercial Services Union (PCS) tomorrow (Wednesday), when both sides stage key conference events on reform in the public sector.

Delegates at a CBI conference in London will discuss future cutbacks and savings while PCS members will vote on further industrial action against current cost-cutting at the union’s annual conference in Brighton.

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The PCS has held two one-day strikes this year in its campaign against pay levels, job cuts and privatisation in the Civil Service.

The CBI last week wrote to the Treasury with its plans for further reforms to public services in the forthcoming 2007 Comprehensive Spending Review. Among other things, it called for:

• the government to save money through greater sharing and relocation of costly or overlapping back-room functions
• public sector pay and pensions to be overhauled to create better incentives for staff to raise their performance levels
• as much of the unfunded public sector pension liability as possible to be removed from the Treasury.