Council negotiators reach tentative pay deal

10 Jun 04
The stalemate over pay and conditions in local government has been broken with employers and unions agreeing to consult on an improved 8.9% three-year pay deal.

11 June 2004

The stalemate over pay and conditions in local government has been broken with employers and unions agreeing to consult on an improved 8.9% three-year pay deal.

After four months of negotiations and threats of industrial action, the three council unions – Unison, the T&G and the GMB – and the employers have agreed a tentative package that appears to have placated all sides.

However, the deal hangs on the agreement of councils – with employers' leaders yet to get full authority for the increased pay – and 1.3 million union members.

The 8.9% pay deal, an improvement on the original 7% tabled by employers, splits into 2.75% from April this year, 2.95% from 2005 and a further 2.95% from 2006.

The unions, who were asking for a 4% increase just for 2004, are far from impressed with the pay proposals. But they were placated by employers dropping their 'strings' for the final year of the pay package.

Instead of having to complete local pay reviews before the final 2006 wage increase would be paid – the same tactic that has caused such consternation among firefighters – employers have set a 'timetable' to complete the reviews by March 2007.

This gives both sides just under three years to agree locally on introducing new pay structures, one of the major provisions of the 1997 Single Status agreement.

The unions' demands for extra maternity, paternity and annual leave will be dealt with in the longer term in a joint review that must be completed by April 2005.

The controversial issue of premium rates, which employers wanted to abolish gradually and unions argued would hit low-paid, part-time female workers, will be dealt with locally. There will also be a national agreement on training and development.

The unions will recommend the deal 'as the best that can be achieved through negotiation' and should complete their consultations by July, the same time as the employers.

Heather Wakefield, head of local government at Unison, said there was still some disappointment with the proposals.

'This is simply an inflation-proof pay offer. They have done nothing to address the historic problems of low pay or the recommendations of the [local government] pay commission.'

A spokesman for the Employers' Organisation, however, denied this. 'With that six-point plan the employers tried to build on what the commission recommended. I would suggest that the unions agree with that since the unions are discussing that one and not their package.'

PFjun2004

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