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Institute of Employment Rights Workplace issues: learning from the front line 27 th March 2013

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

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Institute of Employment Rights Workplace issues: learning from the front line 27 th March 2013

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  1. Institute of Employment RightsWorkplace issues: learning from the front line27th March 2013 Regional pay, wages and living standards Peter Middleman PCS NW Regional Secretary

  2. 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

  3. 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 women 11,000 job losses in north west

  4. The model DCA Deal (2007) Now Ministry of Justice Cabinet Office proposal (2012)

  5. 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

  6. 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

  7. 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?

  8. 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

  9. Public sector pay policy • 2-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...”

  10. Wages as share of GDP Source: TUC Touchstone: Where have all the wages gone?

  11. “Come and see what you could have won”

  12. Political campaign – tide turning? • 14th February press cuttings • Telegraph - Value of pay packets has fallen to 2003 levels • Times – Coalition at fault for rise in inflation, warns King • Express - £700 more on bills just to stand still • Guardian – Miliband throws down poll gauntlet • 21st March – Daily Mirror • FAIL OF THE CENTURY

  13. Industrial campaign • PCS – 3 days of action 20th March – 20th June • NUT/Nasuwt– 27thJune (North West) • Unison – “We will smash this pay freeze” – Dave Prentis, September 2012 • NW TUC – “Living standards, wages and collective bargaining”

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