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The union puts in 2010 pay claim

10 March 2010

On the 1 March the Union sent the 2010 pay claim to the Secretary of State.

The full claim is reproduced below. 

 

The economy, and this claim

PCS recognises the challenges of the current economic climate, but civil servants in your department, many of whom are low paid, are also victims of the recession. Indeed they have suffered from restricted pay rises for at least three years often compounded with the threat of job losses. Work done by the ‘Fair Pay Network’ supports the view that wage increases for the lowest paid at this time would actually galvanise local economies, as wages tend to be spent locally and therefore help the national economy as a whole.

Acting now to implement robust transparent fair pay in the DfT (indeed in the wider civil service) could be a vote winner in more ways than one. As New Policy Institute Director Peter Kenway points out ‘unfair’ pay whether in the public or private sector is not part of the solution (to a damaged economy).

Economic indicators such as inflation give a snap shot of how the economy is affecting workers. The latest forecasts of inflation (source Incomes Data Services January 2010), predicts that the Retail Prices Index will rise sharply to 3.2% by January 2010; reaching 4.1% by April, and continuing above 3% throughout the year. The Treasury’s compilation of independent forecasts shows that RPI is expected to be above 2.5% for most of the year and reach 3% by the autumn.

A recent report for PCS by Incomes Data Services shows that the differing structure and reporting of pay awards in the civil service (and of course in DfT) conceals the lower pay of civil servants compared to other public and private sector groups. Despite the fact that many civil servants on the maximum of their pay point received no consolidated awards, they are still portrayed as earning more than their counterparts in the private sector. IDS research shows that median basic pay levels in the civil service are around 20% behind the pay of public and private sector employees in equivalent jobs.

1. Basic pay increase

Effective 0-2% limits on civil service pay increases have held back PCS members pay in real terms since at least 2006. In 2010 many are facing another year of 2% or less. The Civil Service is a low pay employer, with 63% paid £25,000 or less and average full-time pay for the whole economy being £31,323. In DfT over 12,000 full-time equivalent civil servants earn less than £25,000.

Low pay affects morale, at a time when public services are under increasing pressure from customers to continue to provide a good service, and with less staff to do that. PCS members deserve better than another year with a derisory increase.

The mean consolidated salary of full-time equivalent civil servants working in the Department for Transport outside of London is £23,287. The mean consolidated salary of full-time equivalent civil servants working in the Department for Transport agencies outside of London is £22,982.

The median consolidated salary of full-time equivalent civil servants working in the Department for Transport outside of London is £19,953. The median consolidated salary of full-time equivalent civil servants working in the Department for Transport agencies outside of London is £19,953.

In other words DfT is a low paid area.

Poverty pay can have a negative impact on individuals, and their family’s, life, health and productivity. PCS members need to feel valued, and supported in doing what is often a difficult job.

PCS asks DfT to pay all staff a basic consolidated award of 3%, or the Retail Price Index (RPI) figure on the 1 August 2010, whichever is the greater. This payment to be in addition to any progression pay that staff members are to be entitled to.

2. Pay reform and coherence
 

a) Tackling pay differences
 

The current system of so-called devolved bargaining, where supposedly each sub-part of DfT conducts separate pay negotiations and sets different rates of pay for staff doing work of the same value, is unlawful, inequitable, immoral and a sham. It is unlawful and inequitable in that the principle of equal pay for work of equal value is not adhered to in the department; immoral because DfT well knows that the current arrangements disproportionately and adversely impact on women, ethnic minorities and staff with disabilities and a sham because as the evidence submitted to the DVLA equal pay case (26,000 pages in all) shows that the centre, whether it be DfT Ministers and DfT senior managers or Treasury Ministers and senior managers in the Treasury and Cabinet Office, not only control the amount of money that can be bargained for, but these groups of people can control, and have controlled, the actual amounts paid to individual grades. There is no delegated bargaining in DfT.

Applying the principle of equal pay for work of equal value the PCS is proposing a new pay system with the same grading structure across DfT; having common minima and maxima (those minima and maxima to be the highest existing rates in DfT for each grade) and the same progression speeds for each grade (again the fastest rate that already exist for each grade). The net result of this new system is that staff doing work of the same value are paid the same. The basic pay increase set out in section 1 above is to be applied to the this new pay structure.

b) Progression arrangements
 

As said above we want to move to a new pay system with the same progression speeds for each grade.

Also, we have a continuing concern that pay progression costs and funding, are handled differently to other public sector groups, which is highlighted further in the IDS report.

We seek separate funding of pay progression, which will help to secure better pay outcomes.

c) Performance pay and bonuses
 

Appraisal marking statistics show that performance pay is discriminatory. Also taken over time the appraisal data show a persistent and relatively constant disparity in the proportions: of men compared to women; ethnic minorities compared to white staff; staff with a disability compared to those without a declared disability; receiving the highest appraisal mark. Fair and non discriminatory appraisal systems would not show this disparity over time. Furthermore, there is a marked lack of evidence to show that performance pay is effective in motivating core public sector workers. Basic pay increases are necessary and the fairest way of rewarding all staff for their hard work.

The priority in pay setting should be a general across the board increase and the revalorisation of minima/maxima and any fixed points. Performance pay is generally seen as delivering biased outcomes as shown in many statistical reports; creates divisive tensions among the workforce, and is being increasingly challenged as discriminatory.

We want no performance pay or bonuses awarded this year. PCS believes that the money spent on non-consolidated bonus payments for some, should instead be used to improve permanent, consolidated pay rates for all.

d) One department, one bargaining unit
 

We believe that the current delegated pay arrangements in operation in the Department For Transport have led to unacceptable and unjustifiable differences in pay and other terms and conditions.

Every member of staff has the same employer, the Crown, and all who are employed in DfT, expect their common employer, and their Ministers, to treat them fairly and equally.

Wide pay differences discourage a feeling of cohesion across the Department, and inhibit joined-up working. Also, those on lower rates, are de-motivated, as they are being treated as second-class employees.

The current pattern of delegation, with many separate sets of negotiations for management and union teams, is wasteful of resources, and we believe contributes little or nothing to the effective running of the Department as a whole. We do not believe that a justifiable business case for the retention of the current delegation arrangements can be made. The logic of equal pay for work of equal value means that there should be only one bargaining unit within the department.

Delegation leads to the contradictory situation whereby trading funds such as VOSA are told that because they are running at a current loss then the 2010 pay offer may have to be the same as the 2009 one (a zero percent offer) yet when they were working at a profit they were told by senior managers and Minister that they could not use that money for pay purposes. In other words trading funds are only free when Ministers say they are. In reality across the whole of DfT there is money to fund pay increases for all staff (for example the surpluses of other trading funds). Further the principle of equal pay cannot be subverted because it is claimed that a small piece of the jig saw puzzle of the civil service cannot afford equality of pay. Such a defence is neither legally or morally valid.

e) Equality
 

Ministers and the department are bound to comply with the three equality duties. Unfortunately Ministers and the department have not complied with the duties in the past.

The Secretary of State is legally required to assess the equality impact his decisions will have, not only on each remit, but the affect of his cumulative decisions on remits across the whole of the Department. We wish to be consulted by the Department on these equality assessments.

f) Common conditions, and claim for annual leave, hours of work, maternity/adoption and maternity support leave
 

Our demands on these items:

  • 30 days annual leave for all grades / bands (on entry).
  • 35 hour (net) working week.
  • 39 weeks full pay for maternity / adoption leave.
  • 15 days paid maternity support leave.

Many of these terms have already been achieved in the department. Therefore we cannot see why all, in DfT, cannot enjoy the same terms and conditions.

3. London pay
 

Our claim is that members working in London should be receiving pay rates that are at least £4,500 above national rates for the same work or grade. These leads should apply to all grades and all minima, maxima and intervening pay points.

PCS supports the flat rate approach to London pay as percentage increases benefit higher paid staff disproportionately. London Weighting traditionally has been about dealing with the extra cost of living and working in the capital and a flat rate amount is the best way of doing this.

4. Allowances/shift working
 

Any relevant allowances and payments for working outside standard hours should be increased in line with the main award.

6. Family friendly policies

We expect to see a full range of policies that reflect the Government’s commitment to being a ‘model’ employer. This should include the best possible level of childcare provision and assistance with childcare costs, as well as leave for carers, including special leave for eldercare and employed flexi-time arrangements. We acknowledge some of these needs can be provided for by a range of approaches.

For instance, funding for such policies should be extended and costed outside of general pay bill increases.

8. Summary
 

This claim can be summarised as follows:

  • A fully consolidated and pensionable across the board pay increase of 3%, or the Retail Price Index (RPI) figure, whichever is greater. All of this to be addition to any increase for pay progression.
     
  • a new pay system with the same grading structure across DfT; having common minima and maxima (those minima and maxima to be the highest existing rates in DfT for each grade) and the same progression speeds for each grade (again the fastest rate that already exist for each grade).
     
  • That London pay is at £4,500 or a 3% or Retail Price Index (RPI) increase, whichever is the greater, above national pay rates.
     
  • No performance pay or bonuses; all this money to be funnelled into permanent, consolidated pay rates for all.
     
  • DfT to be one bargaining unit.
     
  • Common conditions across the civil service and linked bodies, and our claim for Leave, Hours and Maternity / Adoption provisions.

We believe that these terms and conditions are affordable, fair and efficient. Our members, your staff, deserve the increases set out above.

Yours sincerely,

 

Dave Cliff                          Paul Williams
DfT Group Secretary         DfT Group President

 

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