23 March 2001
Sources at the talks on March 20 said they were the most ill-tempered in years and were adjourned without even a semblance of a deal in sight.
The negotiations, held between local authority representatives and the three main unions, Unison, the T&G and the GMB, came close to breaking down with several heated exchanges. The unions, representing 1.3 million council workers in England and Wales, are claiming a £1,000 flat-rate pay increase. In the past two years, the unions have asked for £500.
But local authorities have already made it clear that 3% is all they can muster without deep service cuts. This would add £400m to the £13.6bn local government pay bill.
'It is clearly disappointing that we have not made progress,' said councillor Brian Baldwin, chair of the employers.
'But the unions are not facing up to economic reality. Most councils will struggle to avoid cuts at 3%; some have budgeted well below that figure. One person's affordable pay rise is another person's P45.'
But the unions may hold several trump cards this year. They argue that with local authorities receiving one of the best financial settlements for years (an increase of around 7.2%), staff are expecting an above average pay boost.
'We want to see a fair settlement,' said Malcom Wing, head of local government at Unison. 'It is not acceptable that we will have extra money for services but not for the workforce.'
Workers will also be looking to pay deals elsewhere, and with Unison having already negotiated a 3.7% increase for nurses, it will be hard to settle for less for local government.
But the main lever this year will be the expected general election. If ministers manage to weather the foot and mouth crisis they will hardly have the stomach for a protracted dispute with the very public services they claim to value.
Unison in Scotland has already won a 14.1% pay increase over four years, with a £500 flat-rate boost in 2002, through a lengthy bout of industrial action.
The unions have made it clear that they are still willing to talk, but turned down a repackaged offer of 3.5%, only from June rather than April and with some bottom loading.
The employers are due to report back to the Local Government Association on March 29, but Wing warned that without a fresh offer the final consequences could be industrial action.
PFmar2001
