NJC Pay 2014 – 2015 Have your say on local government pay

1. NJC Pay 2014 – 2015Have your say on local government pay UNISON Local Government Service Group

2. NJC 2014-15 Pay Claim: Context • NJC – the poor relation of the public sector • Meagre1% NJC pay rise after 3 year pay freeze • Widespread redundancies and cuts to terms and conditions • Local Government facing unprecedented funding cuts – 40% by 2015 • High profile pay campaign linked to possible industrial action as part of wider strategy

3. UNISON Options for the Claim • Two alternatives agreed by UNISON NJC Committee for consultation: • Option 1 – Living Wage (LW) hourly rate to be minimum pay rate, with an equivalent percentage increase on all other spinal column points • OR • Option 2 – Flat rate increase of £1/hour on all pay points which achieves the current Living Wage as bottom NJC spinal column point and a flat rate increase of £1/hour on all other spinal column points

4. An NJC claim based on the LW • Both options are designed to provide: • Sector wide – not local - bargaining to achieve LW • Maintenance of equal pay proofed single status structures • Prevention of new rash of equal pay litigation • Clear focus for high profile campaign

5. What does Option 1 mean? • A claim based on the Living Wage: • £1/hour on scp 5 = £7.45 – the outside London LW rate • Equivalent percentage increase for scp 6-49 • Same increase throughout the pay spine • Addresses poverty pay at bottom and relative low pay throughout structure

6. What does Option 2 mean? A claim based on flat rate increase of £1 an hour • £1/hour on new bottom NJC scp 5 of £6.45 brings it to current LW level of £7.45 outside London • Simple and also leaves grading structures intact • But increases existing compression in middle and higher pay grades unless extension to spine

7. Options Compared

8. What is the Living Wage? • A wage sufficient to enable workers to live decently and raise their families without hardship • A benchmark figure currently set at £7.45/hour outside London and £8.55/hour in London • Below ‘official’ definition of poverty pay of £7.47/hour – not a fortune • Paid on a voluntary basis • Updated each November • LW employer expected to implement new rate within 6 months of announcement

9. Where are we at with the Living Wage? • Small – but – increasing number of councils have adopted LW • Implementation methods vary • Growing number of councils making pay awards above NJC and including LW • High proportion councils now considering LW • Talk of LW common across LG – important UNISON not lag behind • Aim is to achieve LW through collective bargaining and maintain single status pay structures

10. Why a LW claim this year: The Political Case • Growing public awareness and support for LW • TUC considering LW in Local Government campaign • Think tank research continues to spotlight LW – Compass/IPPR Living Wage Commission • High level political support pledged from Labour and supportive noises from Coalition

11. Why a LW claim this year:The Economic Case • Clear macro-economic case for LW: • IFS study - benefits for the Treasury • Queen Mary College research - multiple benefits for employers • Economic benefits for local community because high proportions of LG workers live in areas they work and spend locally: • APSE and CLES research on LW & higher local spending – every £1 spent generates further 64p

12. Why a LW claim this year: The Moral Case • Local government – the only sector with large numbers of employees below LW • LW is below official poverty level of £7.47/hour • Partnership working and transfer of public health staff puts spotlight on low pay in local government • LW as means to tackle rising inequality falling income and impact of poverty • LW as positive impact on social cohesion, health and future wellbeing

13. Why a LW claim this year:The Recruitment & Organising Case • LW campaign provides clear focus and morale boost for LG employees, members and activists • Branches, activists and paid officials will need to engage very directly with members and non members to explain campaign and commitment to ending poverty pay in LG • Recruitment potential of high profile LW campaign is clear • Option 2 has major recruitment potential

14. Is a LW claim realistic? • Councils and employers can’t have it both ways – local implementation of LW but no – or low– NJC increases • Many councils want to address pay of middle and higher earners • Councils are leaving – or threatening to leave – NJC to do better deals with staff • LW will boost morale and productivity

15. Is a LW claim affordable? • Local government pay bill has fallen for last 3 years in real terms and is now 23.09% lower • In the last year the gross pay bill fell by 10% • Many councils have significant reserves • School funding has been protected - although not inflation proofed • The LGE has mooted a ‘clean up’ of the NJC pay spine to get money into the system • LG section is modelling implementation options

16. Your pay – your say • Branches are asked to consult as widely as possible – return results to regions by 4 October • The UNISON NJC Committee will consider results on 11 October • GMB and UNITE are ending their consultations to a similar timetable • The NJC Trade Union Side will agree contents of the claim on 15 October • It’s time to end poverty pay in local government!