No credit crunch for union chiefs as perks soar by up to 69%

Union leaders have received hikes in pay and benefits of up to 69 per cent – while their members suffer the effects of the economic crunch.

The bosses have quietly negotiated sharp increases in perks such as pensions and accommodation at a time when unemployment is rising and the Government has urged workers to restrain pay demands.

Last night the Conservatives said the disclosures – which follow outrage over the scale of MPs’ expenses – highlighted the increasing power of the unions under Gordon Brown.

The figures, which were buried in the unions’ accounts for the last financial year, show that a total of 12 leaders secured above-inflation increases to their pay packages, with most of the rises coming in the discreet form of ‘additional benefits’.

Much of the pay boom can be attributed to the unions plugging holes in their leaders’ pension funds caused by falling stock markets.

The best-paid leader is Derek Simpson, the head of the engineering union Amicus, who received a double-inflation salary rise of 7.1 per cent last year.

Mr Simpson, who has demanded an end to ‘fat cat’ pay, earns £155,464 in salary and benefits, lives in an £800,000 grace-and-favour mansion in Hertfordshire provided by the union, routinely travels first class and has the use of a chauffeur.

Last year he used Amicus funds to refurbish Esher Place, the union’s Surrey mansion, where delegates can swim or play croquet. As part of the refit, four rooms were knocked together to make a suite for Mr Simpson.

The biggest winner in the latest pay round was Phil Hornsby, leader of the Prison Service Union, whose salary rose by 8.3 per cent to £78,326, but whose benefits rose by an astonishing 69 per cent to £19,453 a year.

Alan Ritchie, head of UCATT, the construction workers’ union, enjoyed a 27 per cent increase in his benefits package.

Dave Prentis, leader of Unison, which represents some of the poorest-paid public sector workers, saw his salary and benefits package rise by 5.8 per cent, to £124,495.

Brian Caton, general secretary of the Prison Officers’ Association, saw his benefits jump by 21 per cent, taking his total package to £122,449, a rise of almost £13,000.

Cushy: Simpson's £800,000 grace-and-favour home

At the time these deals were arranged, inflation was running at 2.7 per cent.

The benefits, which are taxed as income, are in addition to the tax-free expenses the leaders can claim for hospitality or travel costs.

Chris Grayling, the Shadow Pensions Secretary, said the findings showed the unions were regaining their power under Gordon Brown.

The Labour Party is millions of pounds in debt, and is dependent on the unions for funding following the loss of rich private donors in the wake of the ‘cash for honours’ affair.

‘Union leaders are turning into the sort of people they so often criticise,’ said Mr Grayling.

‘If they’re that detached from reality, the increasing influence they are wielding over Gordon Brown is cause for concern.’

A spokesman for the Prison Officers’ Association said: ‘The rise in the general secretary’s benefits package is attributable to the increase in his pension contributions.

‘Our advisers highlighted a shortfall in his pension pot and, because he’s retiring in about 18 months’ time, we decided to fill it.’

A spokesman for UCATT said: ‘The increase in Mr Ritchie’s allowance is because for the first time he claimed a cost-of-living allowance claimed by the previous general secretary.’

Spokesmen for the other unions either refused to comment or failed to return calls.