Public sector union Unison attacked the move, saying cutting public sector employment by such a level would have a knock-on impact on private sector jobs.
Beyond the health sector (Public policies cutting across sectors; and, International and regional level).
There is a seam of orthodox economists, and rightwing politicians, who have believed that the simple act of cutting public sector jobs will create them in the private sector – that because it can be written as an equation the real world must fall into line.
Public and Commercial Services union general secretary Mark Serwotka said: "Driving down pay even further at the same time as cutting public sector salaries and pensions, and planning to cut the 50p tax rate, would not only be cruel it would be economically incompetent and counterproductive.
As lawmakers debated, more than 3,000 public sector workers and retirees gathered to demonstrate against the belt-tightening measures, which include cutting public sector wages by 25 percent and pension payments by 15 percent.
More than a million public sector workers could walk out as part of a protest over government policy on cutting public sector costs and jobs.
The restructuring will involve unpopular decisions, such as cutting public sector salaries and overhauling pensions.
In Greece, the government is in the middle of a tough restructuring program that focuses on cutting public sector wages and pensions.
Along with faster progress on privatization, Europe and the fund have been demanding that Greece finally begin cutting public sector jobs and closing down unprofitable entities.
Mr. Cameron has fulminated publicly about cutting public sector pay and decreed that members of Parliament themselves take a 5 percent pay cut.
