3.12.08

PCS Reaches Agreement with Government over Pay

We have reached a national agreement with the Government over pay.

More money will now be released for pay bargaining in individual departments and related public bodies.

The Government has also said that there is no 2% pay cap on staff pay increases.

We have been campaigning against the unfair pay limit on public sector pay increases and we have demanded fair pay for PCS members.

Many members have been in dispute with their management over the 2008 pay round.

In September members voted in a national ballot for a programme of industrial action. Strike action was planned for 10 November.

We were then told by Sir Gus O’Donnell, head of the civil service, that talks could take place that would address our concerns in this national pay dispute.

Those talks have taken place and the agreement reached. A letter sent by Sir Gus O’Donnell to our General Secretary which sets out the terms of the agreement is available here.

More money to be made available for pay
The letter says that "efficiency savings" can be put to good use in improving pay. This policy change, involving cutting the use of consultants, for example, should release many millions of pounds.

The Employer has not been able to use this money for pay previously.

The letter also says that there is no 2% pay cap on staff pay increases so there is no necessity for people on the maximum of their pay scale to have zero increases.

Campaign continues
The agreement does not mean the end of our campaign for fair pay. It is now necessary for departmental PCS pay bargainers to go to management and talk to them about using this money for staff pay.

Where there have been disputes, management must come back to the negotiating table. The agreement must be tested.

There will not now be national industrial action organised under the authority of the September ballot.

But our national campaign will not end until we are sure that members’ pay has been improved. If necessary, we will step the campaign up again.

Members standing together, being prepared to take action, have opened the door to more money.

Now we must make sure the agreement produces better pay for members.

Our other demands – on pay progression, regional pay, cutting the number of bargaining units, performance pay and equal pay – will be taken up in a process of discussions in the coming months.

Joint action with other unions
We have been working with other public sector unions to campaign against the pay cap. We have said that joint action is the best way to oppose an unfair government policy.

But, in the absence of that joint action, and at a time of economic recession, the agreement we have reached is an important one.

This is the first time in many years that we have achieved a national agreement on pay issues in the civil service and related areas.

Breakthrough
Since 2004 we have protected pensions, won agreements on avoiding compulsory redundancies and on privatisation, and stopped attacks on sick pay.

Members should feel proud that we have now made this breakthrough on pay.