Policy Exchange are a Tory think tank and are generally seen to be full of shite. Of course they're going to be trying to create a wedge between private and public sector workers. The reality is that everyone is being screwed by the people at the top, and they know that if they divide us up and get the private sector to hate the unions, and think that they're getting a better deal somehow, the anger about cuts and rising food prices and whatnot is going to be directed onto other people at the bottom, instead of the true tyrants here. Read what the TUC says in the rest of the article.