30 May 2003
Local government employers this week rubbished union proposals for a £6.50 an hour minimum wage in the sector, claiming it would add £2bn to council wage bills and force £100-a-year tax rises on to the public.
In oral evidence to the Local Government Pay Commission, which is investigating the pay problems that led to last year's national strikes across English and Welsh councils, employer leaders said they agreed that more cash was needed to fund pay claims, but not at 'crippling' levels.
The Employers Organisation, which represents councils, said trade unions would have to accept a degree of regional flexibility in settling future pay disputes in order for local authorities to address problems with recruitment and retention.
The commission, which will report back to ministers in September, has collected written evidence from all interested parties and last week began face-to-face meetings.
In April, Public Finance revealed that the three trade unions involved in last year's strikes – Unison, the GMB and the T&G – had suggested a minimum hourly rate of £6.50 across local government to eradicate low pay and reduce the need for many staff to claim Working Tax Credits.
But Rob Pinkham, the EO's deputy chief executive, said: 'That would add £2bn to the local authority wage bill and almost £100 per household to council tax. Do the unions honestly believe that a further 13% rise, on top of the deal they secured last year, is a realistic workable solution?'
Employers also encouraged the commission to consider the sort of regional pay flexibility touted by Chancellor Gordon Brown as a solution to public sector recruitment problems.
The EO favours a national pay settlement – an annual basic pay rise – in local government, but wants individual councils to set pay for specific jobs.
Responding to the employers' criticisms, Heather Wakefield, Unison's local government officer, said: 'This consultation is about finding solutions to deep-rooted problems with pay and conditions. The hourly rate of £6.50 is a little ambitious, but it was suggested as a guide for the commission, albeit a realistic estimation of what is required to eradicate these problems.
'The bottom line is that the government, as well as employers, will have to come up with more cash.'
PFmay2003
