Questions are starting to come in from members as to what is the situation on Pay, not just the current position regarding negotiations, but also as to what the general position in 09 is.
The situation is as follows:
Existing 2007 to 2009 Pay Dispute. In 2007, the DWP imposed a 3 year Pay Dispute. This is distinct from a “Pay Deal” which would obviously mean an Agreement. Hence there is no pay deal but there is a pay dispute or imposition.
Pay RiseUnder the terms of the imposition, in 2009 all members will receive a 1% Pay Rise. Although in theory now above the RPI rate of inflation, in practise the cost of basic essentials for low paid civil servants-food, fares, fuel, council tax, is continuing to increase at a higher rate than that officially measured by RPI. Nevertheless it could be said to represent a real pay rise.
This Pay Rise of 1% was though designed to be the third year running of real terms pay cuts. The Department did not know that inflation was going to fall when it drew these figures up in 2007.
Pay Progression
Members below max will in addition receive some progression. In 2007, the Branch produced some progression charts to show how the system works. These remain available on request, but typically an AA will receive around £495 in Progression, an AO £670, an EO £1100, HEO ditto, slightly more at SEO level, and a little over double this amount at G7 level.
These amounts will taper down to zero the nearer the max you are. Members should not be fooled by any of this. The Progression amounts are a part of what should come to members by right, to close the gap between the underpayments you have been receiving, and the actual rate for the job (i.e. the max, as recognised in the 2001 Pay Settlement). These underpayments have been calculated at at least £35,000 at the EO grade for anyone in grade since 1997.
Moreover because the max was frozen last year, it declined in value by 5%, so although there is Progression Jim, its not as we know it, as it is progression to a falling max in real terms, (notwithstanding the slight real terms improvement this year.)
In addition, to “compensate” for the poor pay rise on offer of 1%, members on max will receive non-consolidated, non-pensionable payments of 3%. In the original imposition the figure was 2%, but PCS extracted the additional 1% following the negotiations resulting from our pay campaign, money which had been located “down the back of a sofa”.
This then is what will be imposed on pay settlement date, 1st July.
Bizarrely only those on max will receive this non-consolidated money, even though everybody, both those on max and those not on max will receive the same poor 1% pay rise. This anomaly arises because the Department tries to count Progression money as though it were a pay rise, in other words trying to count the same amount of money twice!!
This is the type of thinking that results in members never being able to get to the max in the first place, and being underpaid by £35,000 (and more).
I was delighted when the PCS National Conference carried our Branch’s motion A29/09 (details on the PCS website) which has the potential to begin addressing this discrimination. It is now PCS policy that such non-consolidated payments should be consolidated, and that all members should receive them, not just those on max.
National and Group campaign and negotiations
As previously reported, PCS DWP Group are continuing to seek to extract money that the government Agreed could be made available, but which is thus far conspicuous by its absence.
At National level, PCS is demanding that Ministers and Cabinet Office honour their commitments; however it may be necessary to consult members regarding the next steps of the campaign. Members should be ready for this. There will attempts by the political class and the media to lecture us about the economic crisis created by the senior banking figures.
It is worth remembering that during the “golden decade” when Britain was awash with money that we saw none of it. We had to battle for every gain as usual, and we don’t even have our progression back yet, 12 years on from 1997. Those who expect public sector workers to pay for the crisis created by the likes of the RBS Chief Executive, with his £700,000 pension, should be given short shrift. Our message to the rich must be “it’s your crisis, you pay for it!”.
In similar vein, Vince Cable MP is to the fore amongst politicians wanting to attack not the billions given to the banks, but ….you’ve guessed it, public sector pensions.
The average Civil Service pension is a mere £4,000 a year, yet even this is too high for the greedy so and so’s who have brought the country (and many others) to the brink.
This then raises the question of the nature of representation in Britain, something PCS Nationally will also be discussing with members over the summer, prior to a second major membership ballot. Further details will follow regarding this.
STAND FIRM - SUPPORT THE PAY CAMPAIGN
