And so another TUC conference has drawn to close. From Manchester, the media and politico circus decamps this weekend to Liverpool – for the LibDems – before returning to Manchester for Labour, and then to Birmingham for the Tories’ annual gathering.
Certainly, the past few days have kicked off the new political season with a bang. The looming spending cuts, as expected, cast a long shadow. While Brendan Barber and Bob Crow’s competing vision for resistance battled for the hearts and minds of delegates – not to mention ascendancy on the airwaves – the coalition was left in no doubt that the unions will not go quietly into the night.
Although Crow did not garner universal backing for his call for ‘civil disobedience’ – indeed Barber went out of his way to reject such a strategy – the unions are poised for coordinated action. Whether or not this evolves into another Winter of Discontent remains open to question – it’s too early for precise predictions – but mixed messages have been emanating from government. While Cabinet Office minister Francis Maude spoke of a ‘genuine partnership’ with unions, prime minister David Cameron stepped up the rhetoric by targeting what he described as the ‘vested interests’ in the public sector who oppose the planned cuts.
For public servants all of this must make for thoroughly uncomfortable viewing. As politicians and lobby groups on both sides of the political spectrum jostle for advantage, out in the real world – beyond the Westminster bubble – this debate isn’t about headlines but jobs and livelihoods.
Looking into the crystal ball, what awaits public sector workers?
First, we have reports from two different Huttons. Should we expect from John Hutton cost cutting proposals on pensions including increased contributions, career average pensions and retirement ages of 65 for existing employees? And will Will Hutton, looking at fair pay, include pensions when calculating who exceeds the formula that no public servant should earn more than 20 times the lowest paid public sector worker? Those who will be hit hardest will be doctors and those in arms length bodies plus, of course, the judiciary. These are professions that other governments have shied away from taking on so we should be in for an interesting time.
Second, the Civil Service Compensation Bill, which will cap redundancy payments at no more than 15 months of salary, has had its second reading.. Payments could be six times less than some civil servants would have received under the current scheme and will inevitably result in fewer voluntary departures and therefore more compulsory redundancies. Third, the pay freeze is underway. For how long will it continue? And, fourth, there are parts of the public sector, the latest being Hampshire Police Force, anticipating large cuts in numbers while other services can expect to be outsourced.
This is a heady brew indeed!
For now, as we wait for the details in the spending review next month, public sector managers at a local level must be proactive. This might be around ensuring a strong approach to partnering and communications, engagement directly with the workforce but holding the line as to why cuts are to be made and are unavoidable.
And as for the government, it needs to develop and articulate urgently a clear public workforce strategy. While cuts and freezes are inevitably part of the strategy, the government also needs to demonstrate an upside through decentralisation, reduced central targets, improved processes and an investment in management capability. This will require greater freedoms for local employers to reward employees through performance pay where the overall pay bill decreases and productivity rises. The next four years cannot simply be one of incessant cuts if public service delivery is not to be harmed.
John Marsh is a director at Ernst & Young and a former group human resources director at the Home Office
