institute of employment rights workplace issues: learning from the front line 27 th march 2013
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Institute of Employment Rights Workplace issues: learning from the front line 27 th March 2013. Regional pay, wages and living standards Peter Middleman PCS NW Regional Secretary. The justification. More responsive to local labour markets Unfair variations in quality of public services - PowerPoint PPT PresentationTRANSCRIPT
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Institute of Employment RightsWorkplace issues: learning from the front line
27th March 2013
Regional pay, wages and living standards
Peter MiddlemanPCS NW Regional Secretary
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The justification
More responsive to local labour markets
Unfair variations in quality of public services
Limit number of jobs that public sector can support
Crowding out
Removes competitive advantage of the regions
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The impact“Save Taxpayers £6.3bn/year!”
Policy Exchange Think Tank , September 2012
“Aggravate geographical inequality”60 Academics - The Times, Letters, October 2012
“Cost UK economy £9.7bn/year”New Economics Foundation, November 2012
Possibly include:Pay cuts of 8%-30% (or longer pay freezes)Disproportionate impact on women11,000 job losses in north west
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The modelDCA Deal (2007)Now Ministry of Justice
Cabinet Office proposal (2012)
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The practical effect
“Hotspot” Band D 2007/10 National Band D 2007/10
2010 Band D (Junior Manager/Court Clerk) “Rate for the Job”:
£3,091 differential (14.3%)
Source: DCA Pay News 5/07 – 17th April 2007
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The latest position Summer (2012) press speculation
of a “u-turn”
Hay Group Report - December 2012
Autumn statement: “... continuing with national pay arrangements”
– George Osborne, 5 December 2012
Confirmed in 2013 Budget
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The danger is over?
Teachers Break up of century old national pay bargaining
mechanisms Removal of progression to “rate for the job” Gove overturned but, “pay differentials will
inevitably emerge between schools, authorities and regions”
Avis Gilmore, NUT, NW Regional Secretary
Post 2015 – Outright Tory majority?
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Britain needs a pay rise
Real terms wages have fallen 7% since 2008
£50bn/year lost from the economy
Savings up – “rainy day” money
Household debt to income ratio down
Household spending lowest since 2001
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Public sector pay policy2-year pay freeze
followed by 2-year cap of 1%
1% cap extended to 2015/16
Pay progression under threat
Ed Balls: “...jobs have to come first...”
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Wages as share of GDP
Source: TUC Touchstone: Where have all the wages gone?
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“Come and see what you could have won”
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Political campaign – tide turning? 14th February press cuttingso Telegraph - Value of pay packets
has fallen to 2003 levelso Times – Coalition at fault for rise in
inflation, warns Kingo Express - £700 more on bills just to
stand stillo Guardian – Miliband throws down
poll gauntlet 21st March – Daily Mirror
o FAIL OF THE CENTURY
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Industrial campaignPCS – 3 days of action 20th
March – 20th JuneNUT/Nasuwt – 27th June
(North West)Unison – “We will smash
this pay freeze” – Dave Prentis, September 2012
NW TUC – “Living standards, wages and collective bargaining”