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Pay

Motion A627 was carried

NEC Attitude: support

Conference notes that the HM Treasury Remit Guidance for 2009 was issued on 31 March and that, since then, discussions have been taking place with management in departments and other linked bodies on the release of efficiency savings for the purpose of improving pay. Conference notes that the national executive committee received a report on those discussions at a meeting on 14 May.

Conference notes that the Remit Guidance was issued following the change in HM Treasury policy secured in December 2008 following the national campaign and ballot on industrial action. After a process of difficult talks with Ministers and Cabinet Office and HM Treasury officials, which represented the first national level negotiations on pay since the 1990s, it was agreed that bargaining units would able to use efficiency savings for pay. A letter from Sir Gus O’Donnell, Head of the UK Civil Service, also stated that there would be no 2% cap on pay awards as had been the case in 2008 and earlier years.

Conference notes that during 2008 other public sector unions considered industrial action on pay, and that it was TUC policy to coordinate action between unions, but that did not take place.

Conference notes the decision of the NEC not to take national industrial action under the legal mandate provided by the ballot held in September 2008 and to enter into a process of testing the agreement in the delegated pay bargaining units as the next stage in pursuing our demands. Once the change in government policy had been secured and assurances received on the employers’ intent to implement that policy, it was necessary to ascertain whether that would improve members pay or not.

Conference notes the serious delay that took place between December 2008 and the eventual release of the Remit Guidance, (which the government attributed to the onset of the financial crisis) during which PCS acted to maximise pressure on the employer through parliamentary lobbying and other means.

Conference notes that, having tested out the agreement in delegated negotiations, the inflexibility of the remit guidance rules, combined with an unrealistic deadline of May 30th, has resulted in a widespread refusal to make bids for converting efficiency savings into pay improvements.

Conference believes that this response is unacceptable to PCS. The failure to honour the agreement reached last year, alongside the Treasury’s Remit Guidance which assumes average 1.5% basic pay awards in the civil and public services, as well as including inflexible rules regarding the use of efficiency savings, is an insult to hard working and often low paid PCS members, particularly at a time when MPs of all parties are embroiled in a series of scandals revealing their abuse of public finances for personal gain, when MPs have awarded themselves a 2.3% pay rise, and when other parts of the public sector are receiving higher pay awards, for example: NHS – 2.4%, Teachers 2.3% and Police – 2.6%, with pay progression on top.

Conference notes that economic crisis and the billions spent on bailing out the banks are cited by government as reasons why public spending and public sector pay must be held down. Conference further notes that sections of the media and some politicians are trying to create a division between the public and private sectors. Divisive myths about job security, pay and pensions in civil and public services have been voiced in an attempt to portray the public sector as “having it easy” compared to the private sector.

Conference rejects these divisions and notes that civil and public servants are amongst the lowest paid in the public sector, with nearly half earning less than £20,000 a year, and that many have faced pay freezes and pay cuts in real terms over the last year.

Conference further notes that national talks on Pay Reform (including common pay rates and faster pay progression) and National Standard Conditions (hours, leave and family leave), were also agreed in Sir Gus O’Donnell’s letter. However, the Cabinet Office has responded to our arguments in a largely negative way, and has signaled their intention to reconsider the Government’s approach to much of the pay coherence agenda and reform issues. Conference believes that, therefore, Ministers and senior officials have not delivered on their assurances to the union over Pay Reform.

Conference notes the lack of progress on the part of the Cabinet Office on equal pay and the ongoing equal pay tribunal cases in the Department for Transport. These are strategic cases which seek to establish the principle of pay equality across the boundaries of delegated bargaining units.

Conference instructs the NEC to:

1. write to Ministers, Sir Gus O’Donnell, all Permanent Secretaries and Chief Executives or equivalents of NDPBs informing them that we believe that they have failed to honour the agreement on pay to date, which has resulted in bids not being submitted to the Treasury which would release extra money for PCS members, and call on them to do so immediately;

2. organise consultation meetings throughout the union, as soon as practically possible following ADC, on options for future national campaigning including industrial action. This should involve the different structures of the union and must involve members through workplace, branch and town meetings, and should take into account the position in the devolved administrations and other relevant issues as appropriate. The consultation should make clear that to achieve our national demands we may need to take national industrial action;

3. consider, in the light of the results of the consultation process, the strategy to be followed in the 2009 pay round, and issue the necessary advice to Groups, Branches and negotiators;

4. ensure that, during the period of the national consultation process, full support is given to Groups and other bargaining units which wish to take campaigning or industrial action against the failure of their management to produce acceptable pay offers for PCS members including their failure to utilise the national agreement reached with Ministers to deliver extra pay for PCS members, and ensure that such action is coordinated to maximum effect;

5. include within the next phase of the campaign, and the consultation with members, the necessity for a return to national pay bargaining;

6. step up political campaigning through Make Your Vote Count and lobbying of MPs, MSPs and AMs on civil and public service pay;

7. continue and fully resource legal challenges over equal pay;

8. continue to approach other unions for joint campaigning and action, and the TUC to support such action, raising the need for such joint work at the local level at trade councils and other local bodies;

9. produce further campaign materials and national media work dispelling myths about civil and public sector pay and conditions;

Conference agrees that our national pay demands must be:

  • Each member to receive a consolidated pay increase of 6% or £1000 whichever is the greater;
  • National pay bargaining in the civil service and related areas;
  • Separate funding of pay progression costs from basic increases and other pay bill growth costs;
  • Additional funding to remedy equal pay problems;
  • An end to local/regional pay;
  • An end to unfair and divisive performance appraisal systems linked to pay.

(E marked motions associated with lead motion E20, E239-E271, E240-E251)

Motion A25 was carried

NEC Attitude: remit/oppose

This Conference notes that:

(a) the basis upon which the 2008 national pay dispute was settled, the Gus O'Donnell letter, did not resolve one of the key demands of the dispute such as basic pay awards in line with inflation;

(b) the 2008 pay round has resulted in large numbers of members getting an award below the rate of inflation -as was also the case in 2006 and 2007;

(c) with inflation falling there is a greater prospect of achieving inflation awards in 2009 but that such a possibility is not a basis for seriously protecting and improving the pay of our members;

(d) moreover the pay systems of the civil service and related bodies remain blighted by:

  • a huge number, 200, of so-called delegated bargaining units with wild variations in pay between them;
  • PRP,
  • low pay and unequal pay (within as well as across the bargaining units);
  • unconsolidated pay awards,
  • poor progression;

(d) a continuing Government attitude of profound hostility to the material interests and living standards of our members.

Conference instructs the NEC to:

(a) issue to all members a detailed appraisal of the 2009 Treasury Remit Guidance, clearly identifying to what extent it can genuinely be relied upon to address the key objectives set out the 2008 national pay dispute;

(b) issue to all members a detailed appraisal of the actually approved bargaining unit remits for 2009, once a reasonable number of remits have been cleared by the Centre, identifying the extent to which the approved remits will enable the key issues set out in the 2008 national pay dispute to be addressed within and across bargaining units;

(c) Significantly increase the national pay material to all members, commencing after ADC 2009, including repeatedly highlighting:

  • the pay differentials between bargaining units;
  • how low pay and unequal pay translate into inequalities in pensions, pension lump sum and severance entitlements;
  • how low and unequal pay therefore translate into an adult life of low income and inequality;
  • the gap in pay, bonuses, and pensions between our members and that of the ministers and mandarins who cheerfully preside over the pay of PCS members;
  • proper and informed reporting of central negotiations with Cabinet Office and Treasury;

(d) in the light of the above appraisals, to draw up detailed plans for the pursuit and achievement of the 2008 national pay objectives within a reasonable period, fully consulting members, Branches and Groups in the process.

(E marked motions associated with lead motion E272-273)

Motion A26 as carried

NEC Attitude: support

Many professional economists worry that the UK will suffer from deflation in the coming period. Whilst noting that the great majority of professional economists did not forecast the credit crunch so their judgement cannot be trusted nevertheless this conference believes that the Union should have policy in the event we do see minus inflation rates as measured by RPI and/or CPI. Deflation of course will be compounded by the so called debt crisis that the UK faces.

In the event of deflation this conference wholly opposes:

  • any attempt in any bargaining unit to cut the cash value of wages or the cash value of pay maximums or pay minimums with employers arguing that wages should reflect, in some manner, the falling cost of living.
  • any attempt in any bargaining unit to freeze wages with employers arguing that stand still wages with a falling cost of living equals a "real" pay increase.

This conference asks the NEC to campaign amongst the TUC and Public Sector Unions to adopt the same polices as set out above.

This conference also asks the NEC, if practicable, and in conjunction with other unions, if possible, to develop or publicise alternative ways to that of the PRI or CPI to capture the "real" cost of living. The NEC to also provide pay negotiators with arguments to back up resistance to pay freezes or cuts in the cash value of wages.

This conference agrees that in the event of a cross civil service/public sector pay freeze or general cut in cash value of wages that is attempted to be implemented across the civil service or public sector that bargaining units must not be left on their own to defeat such attempts but that a Union wide (in the civil service) response will be needed.

Motion A124 was carried

NEC Attitude: support

Conference notes and welcomes the fact that discussions are taking place with Cabinet Office on the issue of pay coherence.

Conference further notes that, although the Civil Service standard for calculating the value of a day’s pay is based on 365 days, a number of departments and agency have moved away from this to, for example, a 260 day calculation. Conference recognises that calculations based on anything less than 365 days, mean that members suffer greater pay deductions for unpaid leave etc, including strike action.

The NEC is therefore instructed, as part of the continuing talks on pay coherence, to pursue the application of the 365-day calculation in all departments and agency.

Motion A28 was carried

NEC Attitude: support

Conference notes that no progress has been made on the London pay differential and that this crucial element of the national pay claim has been consistently and effectively side-lined, while attempts to address problems via recruitment and retention allowances have been sporadically successful at best. As a result, many of our lowest paid London members, especially those on the max have suffered disproportionately as cost of living requirements bear no relation to the Treasury’s current inflation definitions.

Meanwhile dispersal of civil service jobs away from London, accompanied by regional pay, has placed the emphasis on keeping pay down outside the capital rather han addressing cost of living issues peculiar to that region.

Conference therefore calls for a renewal of the London pay claim and campaign, using any new evidence available from the Greater London Authority, and in collaboration with other Trade Unions; Conference instructs that the London claim is tabled separately from departmental pay claims to maximise co-operation between branches and circumvent problems caused by differing pay settlement dates.

Motion A29 was carried

NEC Attitude: remit/oppose

Conference endorses the exposure by the NEC of the double whammy visited on members by the Civil Service Employer of both pay cuts, and, unlike other parts of the public sector, the cost of Pay Progression coming out of Annual (or Triennial) pay rounds.

Conference reaffirms the policy established in resolution A81/05 that:

  • All members, including, but not limited to, those on Max should be entitled to an Annual Pay Rise. That this pay rise should seek to compensate for the effects of inflation, improve the position of the lowest paid, and recover some of the monies lost in previous years.
  • All members below the max should, in addition, be entitled to a Pay Progression rise to move them towards the Max.
  • A 1% pay rise must be described as a 1% pay rise, not inflated by double counting of progression money.

Conference notes that this is not a problem that Ministers and MP's encounter, as they receive the advertised salary from day one of taking up post, whilst our members would at times have had to wait up to a century or even longer to reach the advertised rate for the job. Conference notes that material issued by the NEC has not always followed the above principles.

For example in DWP in 2008, no members received a Pay Rise. However this was erroneously transcribed in National material to "40% of members did not receive a pay rise". The error arose because members below max receiving Pay Progression had their progression money counted as if it were a Pay Rise. In other words it was double counted. Conference recognises that because of the attacks on Progression over the last 14 years, many members below the max have been underpaid compared to colleagues on max by huge amounts-£35,000 in a test example at the EO grade. Conference further recognises that these anomalies are common across many Departments, but inadequate recognition of them can result in "bonuses" being offered by the Employer to those on max to compensate them for not receiving a pay rise whilst those below max, who also did not receive a pay rise, receive no such compensatory "bonuses".

Conference recognises that one result of this can be the bizarre position in which those underpaid by £35,000 receive no "bonus", whilst those not underpaid by £35,000 do receive a "bonus", even though neither group has received a Pay Rise. Conference directs the NEC to ensure that at all levels PCS seeks to consolidate such 'bonuses" to those members who have received them, but at the same time and of equal importance, to ensure that those members who have not received these "bonuses" at all, do receive them, and do so on a consolidated basis.

Guillotined: A30 and A32