Trade unions and the pension crisis: defending member interests in a neoliberal world
| Date | 20 April 2013 |
| DOI | https://doi.org/10.1108/01425451311320486 |
| Published date | 20 April 2013 |
| Pages | 294-308 |
| Author | Jo Grady |
| Subject Matter | HR & organizational behaviour |
Trade unions and the pension
crisis: defending member
interests in a neoliberal world
Jo Grady
School of Management, University of Leicester, Leicester, UK
Abstract
Purpose – The purpose of this paper is to draw upon empirical research in order to demonstrate the
ways in which trade unions have responded to the so-called current UK pension crisis.
Design/methodology/approach – The paper uses both theoretical approaches to neoliberalism,
and empirical research in the form of interviews, to examine the contradictions between the rhetoric
and reality of government policy towards, and trade union responses to, pension reform in the UK.
Findings – That trade unions have been constrained by: the fact that the labour party, which they
support, has been in government but has increasingly become receptive to neoliberal economic
policies; and by the broader discou rse of pension reform, advanced by elites that are committed to
neoliberal reforms to the British welfare state.
Research limitations/implications – The scope of the paper is large and thus certain issues
regarding the pension crisis and ideology are not covered in as much detail as would be preferred.
Practical implications – The paper offers forward a unique critique regarding the current favoured
pension policies and solutions.
Originality/value – This paper draws upon front-line theoretical contributions and combines them
with the author’s interviews with leading trade union general secretaries. As such, it is a unique
insight into not only the current so-called “pensions crisis” but also the responses of trade unions, and
the labour movement more broadly, to this constructed dilemma.
Keywords United Kingdom, Government policy, Pensions, Trade unions, Ideology
Paper type Research paper
1. Introduction
This paper proceeds from the premise that, in the current era, neoliberal ideology ha s
become hegemonic (Harvey 2005, 2010). In the light of this, it examines the extent
to which trade unions have been influenced this hegemony of neoliberal ideology.
It does so, first, by analysing the hegemonic constr uction of the pension crisis. And
then, second, by exploring, through the use of interviews, how leading British
trade union general secretaries understand the pension crisis. It then examines how
general secretaries have responded to the hegemonic neoliberal construction of
the UK pension crisis. The paper also sheds light on the impact of various legislative
changes on the employment of older people (with specific reference to pension’s
reforms) and examines the extent to which this has affected the role played by trade
unions in protecting older workers.
It is important to examine the positions of general secretaries in relation to the
development of, and policy towards, the pension’s crisis. Over the last ten years, not
only has the neoliberal construct of the crisis reached hegemonic status (despite claims,
such as that of Blake (2000), to the contrary), but also trade unions, under a New
Labour government, often found themselves becoming unlikely collaborators in
supporting this neoliberal construct. Neverthele ss, the neoliberal construction of the
pension crisis is just one small part of the wider pension’s narrative. Failure to
recognise this has produced a poor deal for pension scheme mem bers. If trade unions
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0142-5455.htm
Employee Relations
Vol. 35 No. 3, 2013
pp. 294-308
rEmeraldGroup PublishingLimited
0142-5455
DOI 10.1108/01425451311320486
294
ER
35,3
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