Public and Commercial Services Union

PCS has submitted a pay claim with the following key elements:

• 3% increase or current inflation (RPI), whichever is greater, to be applied after consolidation of all top-up payments paid in 2008 and 2009
• Significant movement towards the common Civil Service pay rates
• Underpinning £1,200 minimum cash increase
• UK-wide minimum wage of £8.25 per hour
• Improved progression and separate funding for this
• Abolish bonuses and performance related pay, using money released for consolidated pay improvements
• Improvements to family friendly policies

Current economic climate

PCS recognises the challenges of the current economic climate, and that civil servants, many of whom are low paid, are also victims of the recession. Our members have suffered restricted pay rises since 2006 often compounded with the threat of job losses. Work by the ‘Fair Pay Network’ supports the view that wage increases for the lowest paid at this time would contribute to much needed economic stimulus as wages tend to be spent rather than saved.

Ending Low Pay

Despite what the media and management would have you believe the vast majority of civil servants are low paid. More than half of all employees in DWP and CMEC earn less than £18,000 a year and many of those earn less than £15,000 a year. Independent pay research conducted by Incomes Data Services (IDS) shows that civil servants earn less than equivalent jobs in the private sector and have been treated worse in recent years than the rest of the public sector.

Pay Settlements

It is not the case that the majority of private sector workers are getting pay freezes. IDS figures show that average settlements in the private sector was 2% with two thirds of employers awarding increases.

Of those employers that did freeze pay last year it would seem that they won’t be this year and those that are freezing pay this year, did not freeze pay last year.

Civil servants on average have received half the rate of inflation over the past 4/5 years undermining the real value of their pay. Inflation is rising steeply again and our members have a right to increases that reflect the cost of living.

Progression vs cost of living increases

Civil service settlements compare particularly badly with other public and indeed private sector settlements because uniquely they include the cost of progression, which is the cost to moving up to the pay max. We believe in any case that this should be the rate for the job and should be paid within a reasonable period after entry.

Typically when you hear staff in a local authority or private sector company received 2% this will actually mean their pay scales were increased by 2% and that additional costs such as progression are met separately. However in the civil service if a Department or agency receives a settlement of 2% this includes all pay costs and may deliver an increase of 1% or less. Since 2007 your cost of living increases have been sacrificed to pay for progression. Members at or near to the max have received little increase so that a growing number of the most experienced members of staff bear the full brunt of rising prices and feel de-motivated by a dysfunctional pay system. In particular you have told us that you are sick of seeing money diverted from the pay bill to fund divisive special performance bonuses.

PCS continues to challenge this inherently unfair element of the civil service pay settlement arrangements with the Treasury and Cabinet Office.

Recyclables

Management used to be able to use recyclables to top up an award. A recyclable is where money is saved from unfilled vacancies, or promotions, where usually a promoted member of staff near the max is replaced by a member of staff near the min. The level of recyclables varied year on year, but could be worth over 1%. In 2004 the Treasury blocked their use. However in 2008, the Government agreed a Pay Review Body recommendation that recyclables can be used for the Senior Civil Service. We continue to demand an end to this hypocrisy, and that recyclables be available for all staff, and not just the Senior Civil Service.

Get Involved

Your PCS representatives will be continuing to discuss pay with the employer on your behalf but with all the political parties calling for pay restraint it is clear that an early negotiated settlement of your pay grievances is unlikely. On the other hand myths about public sector pay are becoming more exposed and other occupational groups are seeing their own position undermined. PCS will therefore work to build an active campaign on pay. We will evaluate all pay offers and ensure members are able to vote on them. At the right time we will consult you about industrial action.

We will continue to talk to other unions and to seek maximum unity. With inflation forecast to remain above 3% talk of public sector pay cuts are very unrealistic. Pay will increasingly move back to the top of the trade union agenda and may lead to greater unity of purpose. Every member can help to prepare the ground for a campaign on pay. We are always at our most effective with everyone in membership. So please ask your work colleagues to join PCS and contact your branch secretary to see how you could get more involved.