Employers seek multi-year pay deals

8 Jan 04
Local government employers want an end to the traditional annual pay talks in favour of multi-year deals, with both English and Scottish councils looking for two-and three-year packages.

09 January 2004

Local government employers want an end to the traditional annual pay talks in favour of multi-year deals, with both English and Scottish councils looking for two-and three-year packages.

In the opening gambit in the English pay talks, the first for two years, employers have said they want a three-year pay deal with proposals tied to some of the recommendations from last year's Pay Commission. In a clear effort to create both financial and political stability after the bitter dispute in 2002, employers said they wanted to make 'progress on issues that have divided them'.

They propose that all authorities complete pay reviews between April 2004 and 2005 – an enormous undertaking that paves the way for single status – and a joint review of council conditions of service.

However, they warn that any pay deal will 'be within the resources available, without putting undue pressure on council tax', an indication that employers are looking for increases pegged to inflation. They have also stated that the deal will not be bottom loaded, ie, designed to benefit the lowest paid.

Neither of these assertions will sit well with the unions, Unison, the T&G and the GMB, which have yet to decide their joint claim. They will be looking for rises well above inflation to counter recruitment and low pay issues.

Traditionally, the unions are suspicious of longer-term deals, despite the current two-year package that delivered between 7% and 10% in pay increases.

A spokesman for the T&G told Public Finance that they did not favour multi-year deals but would see what was 'on the table'. Unison concurred, adding that it was not going to rise to pre-emptive statements. 'This clearly reflects the government's agenda on longer-term deals and is not entirely unexpected,' said Heather Wakefield, Unison's head of local government.

The National Joint Negotiating Committee is due to meet on January 29 when the unions will lodge their claim.

North of the border, Scottish unions have already fired the opening shot and said they will be looking for 'significant increases' following their current 14% four-year deal.

Unison in Scotland said it would be looking to close the gap between local government and the rest of the public sector and would be seeking a £6 minimum wage. Unlike their English colleagues, they favour longer-term pay deals.

The Convention of Scottish Local Authorities, anxious to avoid industrial disputes, said it had to balance what it has to provide with what it can afford.

PFjan2004

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