Globalization and the service workplace: citizenship, entitlement, and the future of U.K. occupational pensions

Abstract

The global economic recession has hit the U.K. service economy hard; less remarked on has been the recession’s effect on the British pension system. As private-sector occupational pension coverage continues to plummet, public-sector pensions are also in the sights of politicians looking to cut public spending. The government, which in 2005 announced plans for a universal (citizen’s) state pension, has now shifted its focus to a new system of personal accounts to impel medium- and low-income workers without pensions to save for retirement. In this article, the author argues that only a system built on a universal pension in the “first pillar” can guarantee an adequate pension for all, especially part-time and/or temporary workers, carers, and those with interrupted careers. Many such women are workers, and many are in service-sector jobs. Unions and organizations representing service-sector workers therefore need to consider whether to focus their energies on preserving existing benefits for the few or on campaigning for adequate pensions for all