Institute of Employment RightsWorkplace issues: learning from the front line

27th March 2013

Regional pay, wages and living standards

Peter MiddlemanPCS NW Regional Secretary

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

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 women11,000 job losses in north west

The modelDCA Deal (2007)Now Ministry of Justice

Cabinet Office proposal (2012)

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

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

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?

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

Public sector pay policy2-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...”

Wages as share of GDP

Source: TUC Touchstone: Where have all the wages gone?

“Come and see what you could have won”

Political campaign – tide turning? 14th February press cuttingso Telegraph - Value of pay packets

has fallen to 2003 levelso Times – Coalition at fault for rise in

inflation, warns Kingo Express - £700 more on bills just to

stand stillo Guardian – Miliband throws down

poll gauntlet 21st March – Daily Mirror

o FAIL OF THE CENTURY

Industrial campaignPCS – 3 days of action 20th

March – 20th JuneNUT/Nasuwt – 27th June

(North West)Unison – “We will smash

this pay freeze” – Dave Prentis, September 2012

NW TUC – “Living standards, wages and collective bargaining”