Government pay freeze bites
The Government has imposed a pay freeze on anyone in the public sector earning over £21,000. This means that nearly half of DWP staff will receive no consolidated pay rise this year. This includes part time staff whose full time equivalent pay is above £21,000. Members’ reasonable expectation to get a pay rise in line with inflation, reasonable pay progression and some recompense for their tremendous hard work are not going to be satisfied this year because of the pay freeze.PCS opposes the imposition of this unfair and divisive pay freeze. We oppose both the total pay freeze on members earning more than £21,000 and the proposed below inflation increases for those paid under £21,000. DWP members have already been the victims of severe pay restraint every year since 2006, including freezes on the max and below inflation cost of living increases.
National Pay Campaign
PCS has long argued for a new pay system for the civil service with rates of pay harmonised across departments and where there are transparent pay progression system from min to max within 5 years. PCS continues to pursue this goal of a fairer pay system with the employer to end the system that allows staff in other departments to earn significantly more that staff in DWP. PCS will continue to challenge the pay freeze, alongside other public sector unions, and pay will form a key part of the National campaign against the cuts in the public sector.During the talks with DWP, PCS were adamant that, despite the difficulties the pay freeze created, DWP management should:
- make every penny available for pay
- make the available money go as far as possible
- distribute it as fairly as possible.
Consolidated pay rises - under £21,000
Under the terms of the government pay freeze, everyone earning under £21,000 is entitled to a consolidated pay rise of at least £250. PCS successfully sought to increase that figure for everyone – we believe very firmly that low pay must be eradicated from this department. We were also keen that when money was so tight, everyone should be treated as fairly as possible whether on the pay band minimum, maximum or in between.Flat rate pay rises
As a result all staff paid under £21,000 will receive a flat rate increase, wherever they are on the pay scale. The same flat rate applies also to members on the Max and to members in the London pay zones and Special Location Pay Zones. These flat rate payments are consolidated pay rises and payment will be backdated to July 2010. The flat rate consolidated increases are:- AA/Band As: £400
- AO/Band Bs (earning under £21,000): £465
- EO/Band Cs (earning under £21,000): £540
Pay cut in real terms
The flat rate payments fail to provide for any real pay progression this year in DWP and the consolidated increases are below the current rate of inflation (RPI stood at 4.8% in July 2010). This means that this pay award, even for staff earning less than £21,000, represents a pay cut in real terms. It is unacceptable that, as prices rise higher, wages stand still.Performance bonuses – unfair to 97%
The money available to be used for performance bonuses amounts to an enormous £55 million this year. These payments are non-consolidated lump sum bonuses and are paid on the basis of grade and performance marking. They are not affected by the pay freeze:Consistently Good
A/AA: £305
B/AO: £365
C/EO: £510
D/HEO: £630
E/SEO: £780
F/G7: £1,120
G/G6: £1,420
Wholly Exceptional
A/AA: £610
B/AO: £725
C/EO: £1,015
D/HEO: £1,255
E/SEO: £1,555
F/G7: £2,235
G/G6: £2,835
PCS argued that, because of the exceptional circumstances of the pay freeze, we should all receive as much as possible from the bonus pot and that, because, everyone had worked so hard in the last year, bonuses should be as equal as possible.
Higher grades get more
Additionally we discovered that those in the higher grades were much more likely to have received a wholly exceptional marking and therefore it would be unfair to pay significantly more to those getting a wholly exceptional. In the pay offer management recommended paying much higher bonuses to higher grades and double to those with a wholly exceptional mark – even though they know this is especially unfair to the lower grades.£7 million missing
PCS argued hard that every single available penny must be used on pay this year. Management have £7 million earmarked for special bonuses and vouchers. We asked for that money to be brought into pay to give everyone an additional £65 on their bonus. Management have so far refused to use it for pay saying they like having the special bonuses. You may wonder why? PCS demanded a detailed breakdown of how the £7 million was spent last year – shockingly management say they didn’t have the statistics, or monitor them, so they have no idea if the money is spent fairly or in accordance with the laws on equality. This is disgraceful and shocking and an even stronger argument as to why the special bonus schemes and voucher schemes must be stopped and the money used transparently and fairly to improve everyone’s pay instead.DWP management must improve the personal reward package. Many members felt angry during these talks about the personal reward statements they received. We asked management to improve what the very limited pay offer by improving terms and conditions which, although valuable to members – cost nothing in pay terms. We specifically asked for the right to full flexi-time working to be available for all and for the reinstatement of the annual Christmas flexi credit that was withdrawn last year. Management have not yet made any offer to improve these terms and conditions.
What next?
While this was never going to be an easy year to improve pay, overall it is extremely disappointing that DWP management have not done everything within their power to maximise the amount of money available, to distribute it more fairly and to compensate their hard working staff with additional terms and conditions improvements.Ballot at members’ meetings
Management have allowed 30 minutes time and premises for all members meetings to discuss and vote on this offer. Because of the exceptional effect of the pay freeze we are not running a postal ballot on pay this year. It is therefore vital that you attend the pay meeting in your office to have your say. PCS is recommending that members vote to reject the pay freeze and to improve the offer and make it fairer.PCS will continue to campaign for fair pay for all members in DWP and will continue to press DWP to improve the pay offer where they are able to do so. The next few months are likely to be difficult, DWP management should seek to motivate all of their staff, not divide them with an unfair pay offer.
Together we will win.
