Brown warns workers off pay demands

19 May 05
Chancellor Gordon Brown has used his first two keynote speeches since the general election to issue a stark warning to public sector workers against excessive wage demands.

20 May 2005

Chancellor Gordon Brown has used his first two keynote speeches since the general election to issue a stark warning to public sector workers against excessive wage demands.

Speaking to the CBI and trade union Amicus this week, the chancellor said that pay claims must match investment in the public services.

He told business leaders at the CBI annual dinner on May 17 that there would be no inflationary pay deals struck among staff in the state sector. 'Wage discipline will at all times be demanded in the public sector,' said Brown.

The next day, in Brighton, he repeated this theme, telling delegates at the Amicus conference: 'Public sector reform and wage discipline will at all times match our investment, as we replace input and process targets by far more local, on-the-ground accountability.'

The chancellor stressed that reforms of the public sector would continue during Labour's third term.

Public sector unions appeared nonplussed by the chancellor's comments, claiming there were no impending pay battles looming. The three-year pay deal for local government has just entered its second year. Council workers will receive 8.9% between April 2004 and March 2007.

A spokesman for Unison said it did not want to comment directly on Brown's warning, but that union leader Dave Prentis wanted to challenge the government's refusal to drop the 48-hour working week opt-out.

The T&G's deputy general secretary, Jack Dromey, said many pay issues were already resolved in the public sector through three-and four-year deals. 'The chancellor is clearly exercising his traditional view of prudence with the public finances,' he said.

PFmay2005

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