8.12.08

National Agreement on Pay

PCS North West Regional Office have provided the following information in the form of a Question and Answer briefing:

Does the agreement mean more money for pay?
Yes. It means that when efficiency savings have been identified, they can now be used for improving pay. That’s a change in policy. In the past the Treasury would not allow departments and non-departmental public bodies to use that money. The government has not agreed to find additional money on top of existing budgets, but now there is access to new money from these savings, which could amount to many millions of pounds.

Will members in areas where pay offers have been imposed gain any benefit from this agreement?
Yes. In the talks, the employer’s side was not prepared to state formally that existing pay settlements should be re-opened. But they went on to make clear that money from efficiency savings should be used to improve pay in all areas, including where there have been pay disputes or agreed settlements.

The letter from Sir Gus O’Donnell is not as clear as we would have liked because of the limits on what the employers could say at the present time, but there is no doubt that discussions can now take place on improvements to members pay in areas where there have been imposed offers for 2008, including where multi-year offers were imposed.

Does the use of ‘efficiency savings’ mean accepting job cuts?
No. We will continue to oppose and campaign against job cuts, and cuts in public services. The biggest area of efficiency savings discussed in the talks was the use of contractors and consultants. We must now maximise the money available and make sure it comes from the sources we want it to come from.

What’s happened to the public sector pay cap?
The Treasury said in September that there is no “specific number that is the target for pay settlements”. But the Treasury’s pay remit guidance for 2008-9 stated that consolidated pay awards could be no more than 2%. Other public sector unions have had similar problems. The agreement we have now reached states clearly that there is no such pay cap and the new Pay Remit Guidance should reflect this.

Why couldn’t we negotiate a pay rise centrally?
We could not agree an across the board pay rise for all staff because we still operate within the delegated pay bargaining system. The extra money now available for pay will be negotiated in each pay bargaining unit. Our aim is to achieve a situation where central pay bargaining does take place.

We believe that would be in the interests of members and of the civil service as a whole. But even within the delegated bargaining system, we have achieved an agreement on pay issues for the first time in many years.

Are we now leaving each department/NDPB on their own?
No. Delegated pay bargaining will take place in each area but we will be monitoring progress and testing it against the agreement we have reached. Guidance will be given to all pay negotiators. We are clear that members everywhere should benefit from the changed situation.
Will some organisations find more efficiency savings than others?
Yes, some large departments will be able to find more efficiency savings than smaller organisations. But those smaller organisations have fewer staff and a smaller paybill. It is a matter of scale. Moreover, the previous refusal to allow savings to be used for pay acted to hold down pay generally. Now we can begin to change that.

What about our other demands on pay?
The agreement will mean that we now enter into discussions with the Cabinet Office and Treasury on our other demands - on pay progression, regional pay, cutting the number of bargaining units, performance pay and equal pay.

These will take place over the next few months. On funding for pay progression, where we have been calling for a level playing field with other parts of the public sector, there was a great deal of discussion during the negotiations.

The government did not agree to make new money available for this, but the employer side has indicated that they are prepared to consider change as the talks proceed. Money from efficiency savings can be used to fund scale shortening and progression.

Could we have achieved more if we had taken strike action?
We are confident that the strike on November 10 and the action short of a strike that had been planned as part of the campaign would have been well supported. But if we had taken that action we would not have been able to test out the agreement that was on offer. We believed that members would want us to accept that offer and see if we could achieve better pay before calling a strike.

Is the national pay campaign over?
No. The progress we have made on improving pay will be tested out in the delegated bargaining process. If necessary, our national executive will consider stepping up the campaign to ensure that members gain a real benefit from the agreement. If we are successful we will then be in a stronger position to move onto our other national pay objectives.”

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