Tough line on pay angers staff

Jun 9 2008 by Kevin Rowan, The Journal

THERE was doubtless a feeling of relief in government on Friday when the result of the Unison health service ballot on their pay offer was accepted by a significant majority. This was, of course, one of the best public sector pay awards on offer and the Royal College of Nursing had already accepted the deal. One down, several others to go.

Today, a wide range of public sector workers are lobbying MPs and Ministers over the imposition of below inflation pay deals.

The decision to take a very tough line on pay rates within the public sector have angered and disappointed workers in the public sector who have already endured decades of uncertainty through privatisation and marketisation, contracting-out and ‘best value’, ludicrous statements about the “excellent” public sector pension schemes; workers have endured a permanent revolution that has unsettled and challenged the public service ethos prevalent in the public sector.

The reality is, despite the vast extra sums of money that have been invested in the public sector, workers do feel undervalued and unappreciated.

There are more public sector workers than when the Labour government came to power, it is true too that wages have grown higher than in the past. Let’s not get carried away, though, hundreds of thousands of public servants are struggling along on just over £10k per year, among the lowest earners anywhere, and the so-called ‘fantastic’ pensions work out at an average of £4,000 per year in local government.

The need to restrict public sector wage settlements, the government argues, is to try to keep control of inflation as well as keeping public sector spending down.

These arguments are certainly not accepted by public sector trade unions. Below inflation pay deals are in practice a pay cut for workers. Cutting the pay of workers who are not enjoying inflation-busting pay in the first place – i.e. 90% of all public sector workers, has absolutely zero impact on inflation, it just makes the less well off even worse off.

It is always difficult decision making choices about where to focus limited public sector funds, especially during fiscal tightening, and there are many views and demands for that resource, but expecting public sector workers to bear the brunt of these pressures does nothing at all to encourage them to feel valued and appreciated.

There is also, of course, a particular impact in the North East.

While we don’t have a high level of public sector workers per capita, there is a relatively small private sector by comparison. Effectively taking a proportion out of the region’s wages will impact upon people’s ability to spend, along with massive increases in fuel and food prices. Those lobbying government and MPs today will be making these points very clearly. Politicians are often, sometimes unfairly, criticised for being out of touch, this is one area where they should listen very carefully to their constituents.

Kevin Rowan is Regional Secretary of Northern TUC