Sadiq Khan has given a major victory to the striking workers of Tube by noting that it accepts union demands not to cut staff pensions.
The mayor of London said he was not convinced “there was any reason” to change Transport for London’s final salary retirement plans, although his own advisers described the pension benefits as “expensive and without reform “.
Mr Khan’s statements come amid an ongoing dispute with Grant Shapps, the Transport Secretary.
Rejecting the mayor of London’s demands for a £ 1bn funding deal from the central government, Shapps said using the threat of tube and bus cuts serves as a “political weapon in your campaign to to a long – term capital financing agreement “.
Instead, Shapps sanctioned another short-term extension of government funding until July 13th.
Ministers have funded public transport in the capital since the start of the pandemic through a series of agreements ranging from a week to six months.
A condition of the second agreement at the end of 2020 was that Mr. Khan instructed the experts to conduct an independent review of TfL’s finances.
Experts, including former head of railway regulator Stephen Glaister, found: “TfL’s current pension model is expensive and unreformed. The plan is generous with employees when compared to TfL’s schemes. the railway network and the civil service, which have been reformed.The scheme is outdated.
“Modernizing the pension model, with government support obligations, could generate savings of £ 100 million a year and limit future liabilities.”
The TfL pension scheme cost the transport authority £ 401 million in contributions last year.
But Khan told the Evening Standard on Thursday: “I am clear that I am not convinced that there are reasons to change the pensions of those who work for TfL. It is up to the Government to give the case.
“I’m pretty clear on that [that] the way to recognize the hard work of our transportation workers — the thousands who have kept our city running — should not be to make unilateral changes to its terms and conditions. “