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NHS Pay: the proposed agreement for 2008/9 to 2010/11

NHS Pay: the proposed agreement for 2008/9 to 2010/11. Josie Irwin Head of Employment Relations, Royal College of Nursing April 2008. The Talks. Occurred in parallel with evidence to NHS Review Body Began Sept 2007 Staff Council Exec + Scotland and Wales CSR pay limit 2% ‘the obstacle’

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NHS Pay: the proposed agreement for 2008/9 to 2010/11

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  1. NHS Pay: the proposed agreement for 2008/9 to 2010/11 Josie Irwin Head of Employment Relations, Royal College of Nursing April 2008

  2. The Talks • Occurred in parallel with evidence to NHS Review Body • Began Sept 2007 • Staff Council Exec + Scotland and Wales • CSR pay limit 2% ‘the obstacle’ • Offer made in January 2008 (2.45%, 2.2%, 2.2% = 7% over 3 yrs) rejected by negotiators • Restructuring costs would have been deducted from these headlines www.rcn.org.uk/payproposals

  3. The talks continued • On 31 January, offer raised to 7.2% - rejected by negotiators • Staff side agreed to ‘pause’ talks, await Review Body report and possibly negotiate yrs 2 and 3 • Talks on 2 and 4 April generated proposed agreement (including NHS RB recommendation) www.rcn.org.uk/payproposals

  4. Context • 2007/8 Settlement included commitment to talks on a multi-year pay deal and restructuring • RCN strategy: address long bands, raise ceiling of band 5, close gap with teachers • Evidence to NHS RB – ‘substantially above inflation award’ • Inflation CPI 2.5%, RPI 4.1% • Forecast: CPI below 2%, RPI 3% by year end • Worsening economic situation www.rcn.org.uk/payproposals

  5. More Context • Government public sector pay policy 2% per year for 3 year CSR period • PRB reports to date: DDRB 2.2%, Prisons 2.2%, Armed Forces 2.6% (1 year) • Scotland Teachers – 2.25%, 2.5%, 2.4% • Local Govt offer in Scotland – 2.5%, 2.5%, 2.5% • Local Govt offer in England & Wales - 2.5% www.rcn.org.uk/payproposals

  6. The proposed agreement 2008/9 – 2010/11 in summary • Three year proposal subject to consultation • 2.75% PRB recommendation for 2008/09 paid in full • Yr 1 2.75%, Yr 2 2.40%, Yr 3 2.25% pay & allowances • Band 5: changes to structure in Yr 2, 3 and 4 • Band 1: removal of bottom point in Yr 2 • Inflation ‘re-opener’ after Year 1 • Continued role for NHS Review Body • Trade Union Facilities Agreement • Work Life Balance Statement • Discussions on bands 6 & 7 • The ‘working week’ www.rcn.org.uk/payproposals

  7. Restructuring in detail - yr 2 • Abolition of the first pay point raises the NHS minimum wage to £6.77 • Changes to increments in band 5 worth: • 3.62% point 19 • 4.19% point 20 • 3.01% point 23 • 3.08% point 24 • 2.73% added to point 25, (top point of band 5, third point of band 6) • Total value inc headline uplift 2.4% = 2.54% www.rcn.org.uk/payproposals

  8. Yr 3 in detail • Flat rate increase of £420 for points 1-13 (3.17% at lowest point) • Reduction in number of points in band 5 • Changes to increments in band 5 worth: • 2.31% point 19 • 2.36% point 20 • 5.18% point 21 • 2.57% point 23 • 2.53% point 24 • 2.59% added to point 25, (top point of band 5, third point of band 6) • Total value inc headline uplift 2.25% = 2.5% • And yr 4 additional money on points 19, 20, 23,24 & 25, bringing total value of the package to 8.1% (7.99% over 3 years) www.rcn.org.uk/payproposals

  9. Growth on pay points over 3 years www.rcn.org.uk/payproposals

  10. And more ….. • Talks within 3 year period on reduction in pay points on long bands starting with 6 and 7 • Future talks on reducing hours of the working week • TU facilities agreement • New initiative on work/life balance and well being at work • Re-opener clause for yrs 2 & 3 if significant change to R&R or inflation www.rcn.org.uk/payproposals

  11. If accepted • Payment probably in June • Pay stability for 3 years • Discussion with RB on continuing role • Talks on further restructuring • Talks on working week linked to productivity • RCN will submit evidence to RB • If necessary trigger re-opener www.rcn.org.uk/payproposals

  12. If rejected • Little possibility of improved offer – best in public sector so far • No further restructuring of long bands • Yr 1 only – Government may react by staging • TUs would need to be prepared to take industrial action to fight for more • Risk of fragmentation – devolved countries do their own thing, staging leads to Foundation Trusts ‘doing their own thing’ www.rcn.org.uk/payproposals

  13. Visit www.rcn.org.uk/payproposals for more information.

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