Public and Commercial Services Union

This is the first of monthly pay briefings for all members of our union. This briefing focuses on:

1. Negotiations with MOD
2. Pay talks – timetable
3. Pay – Priorities for PCS in negotiations

1.  Negotiations with MOD

Informal discussions are ongoing, but formal negotiations cannot commence until MOD has received its negotiating ‘remit’ from the Treasury.

The informal discussions have been broadly positive, although all sides recognise that the Government’s public sector pay restraint policy will make an acceptable outcome very difficult. Our union has put our members’ priorities on pay clearly and firmly to MOD. These have been clearly communicated to us by members responding directly to the PCS pay consultation document.

2.  Pay timetable

As at end of June 2008 MOD had not submitted a business case to the Treasury. Until it has done so, and until the business case has been approved or otherwise by Treasury, MOD will not be in a position to begin formal negotiations with PCS and the other unions.

This clearly makes an August settlement date extremely unlikely – if not impossible. We have made it clear to MOD what our members’ view would be of a delay in implementing the new pay award. Our union has been ready for months to enter into negotiations. We have made it plain that members will rightly blame MOD and Treasury bungling and incompetence for any delay in payment.

3.  Pay – PCS priorities in negotiations

We have been inundated with responses to our pay consultation document and over 1,000 members, to date, have attended PCS pay meetings.

Based on this feedback PCS is focusing on 7 key priorities:

1. Faster progression towards an achievable pay band maxima. This should address a major issue for many of us, being stuck at the bottom of pay bands for years and/or having no realistic chance of ever getting to our respective pay band maxima.

2. However, members have also made clear that they feel some element of progression needs to be retained and that one rate for the Job (or ‘spot pay’) does not currently find wide support amongst members.

3. There is a clear demand for a decent cost of living award for 2008. This, obviously, needs to be in addition to progression. Our union will be pressing this demand as strongly as we can. However, as many members are aware the government has made clear that such rises must be 2% or less as civil servants continue to be made the victims of inflation.

4. The clear call for a cost of living award in 2008 is linked to the anger – and despair, of many members at the scandalous levels of low pay in MOD. Members overwhelmingly support our campaign to end poverty pay in 2008.

5. Members cautiously support the introduction of market skills supplements (MSS) – particularly if it heralds the end of the use of higher starting pay (HSP). In many locations staff have highlighted pay ‘leapfrogging’ where staff recruited from outside are receiving higher pay than existing staff doing the same job.

6. Members made clear that whilst supporting the reforms negotiated on the old bonus scheme that our priority remains the total scrapping of the performance pay in all guises. This remains PCS policy, although all members should be aware that if the performance pay arrangements were to be scrapped that under Treasury rules MOD would be prohibited from spending this money (around 2.7% of the total pay bill) and on a ‘use it or lose it’ approach Treasury would claw this money back.

7. On the length of the pay deal – and in line with the views of members – we will pursue a 1 year deal, unless there are clear financial benefits to any longer deal.

Further briefings will be issued as and when we have any news, but at least on a monthly basis. If you have any further queries, please email Paul Barnsley at paulba@pcs.org.uk