Pay Update No 13 - PCS bargaining strategy

As members will be aware PCS is urging members to vote 'no' in the current ballot on the MoD pay offer for 2008/2010.

At the same time we are continuing to attempt to resolve members’ concerns and to achieve a positive outcome on pay. Members can play an important part in helping use to achieve this.

Our bargaining strategy

Attached to this circular (At Annex 1) is a letter from the PCS MoD group president to the MoD director of civilian personnel, Susan Scholefield.

We have taken the step of writing to her to urge intervention in this matter at the highest levels. We hope that the MoD will take this opportunity to talk and that we can agree a delay in the imposition of the reductions at the E1 and E2 maxima.

We have made clear that PCS stands willing to meet the department at any stage to explore possible solutions on pay and to look at ways to mitigate the impact of MoD proposals.

We hope MoD will take us up on this offer.

Mark Serwotka, our general secretary, has written to the chief secretary to the Treasury (this letter is attached at Annex 2). Mark has made clear, at the highest levels, our opposition to the MoD proposals. We are encouraging the Treasury and Cabinet Office to intervene in the potential dispute that we have with MoD.

Finally, we have taken detailed legal advice on MoD proposals. We will be writing to members further to that advice shortly.

How members can get involved

There are a number of ways you can play your part in our pay campaign:

  1. Write to the secretary of state, Rt. Hon John Hutton MP to protest. The model letter is available on the PCS website
  2. Sign the PCS petition to the Prime Minister
  3. Attend your local PCS pay meeting to hear the latest news on pay.
  4. Ensure fellow staff are aware of the impact of the MoD pay cut proposals and that non members join us today.
  5. Make sure that you vote in the ballot (the closing date is noon on 28th April)

Support the campaign

The MoD pay offer is unacceptable for many reasons. These include:

  • An attack on the pay of the lowest paid staff with huge cuts to pay at the E1 and E2 pay band maxima.
  • MoD is attacking the future pensions of all staff, particularly at pay bands E1 and E2.
  • A series of cuts to the pay and allowances of civil servants serving overseas
  • Scale shortening has pushed many members back down to their pay band minima – this after member’s have spent years moving away from it.
  • Freezing pay band maxima at senior pay bands
  • The offer is divisive, below inflation for thousands of staff and does not meet the terms of the PCS national pay claim.


We cannot accept a pay cut - please Vote No in the ballot.


Annex 1 – Letter to Susan Schofield, DG Civilian Human Resources and Corporate Services

Dear Susan,

PAY OFFER 2008 – 2010

I write to notify you of a potential dispute regarding the implementation of phase two of the offer made to the non industrial trade unions in December 2008 and to invite you to intervene with a view to reaching a settlement with PCS.

As you may be aware, PCS did not object to the implementation of the first phase of the offer, in February 2009, mainly as the award was by that stage six months late and staff were keen to receive the increase. However we made it clear at the time that we had serious concerns about the proposals which were to be implemented in May 2009 and sought additional talks with the department, under the auspices of the 2009 Treasury Remit Guidance, to seek to resolve these.

Our concerns centred mainly around the proposed cuts to the maxima of grades E1 and E2, the introduction of the time limited protected pay allowance and the proposed changes to overseas salaries (the removal of the link to London pay).

In fact these concerns were reflected in the offer letter to the trade unions, which said:

“The Department has agreed with the Trade Unions that it will continue discussions to take into account any changes to the annual Civil Service Pay Remit Guidance and the outcome of the national Civil Service wide talks, including any facility to make use of efficiency savings, and to discuss resolution of the pending equal pay and age discrimination cases.”

“For staff affected by the creation of the new generic E pay group maxima, during the offer period, we propose:

a. a job evaluation grading exercise jointly with the trade unions to review, by occupational group of those affected, and confirm the correct grading level and if the grading level is not confirmed, agree the way forward with the trade unions

b. following the grading exercise, to assess, together with the trade unions whether “the protected pay allowance” could be converted into a protected Market Skills Supplement (MSS) and which may lead to additional payments (depending on the market conditions).

c. and, further talks with the trade unions to find an agreed way forward on pay protection.

A project plan will be devised under the aegis of the Pay Forum and agreed with the Trade Unions by March 2009.”

PCS has sought to address each of these issues with the Pay team since then, both informally and through the aegis of the Pay Forum, without success.

The last Pay Forum took place on 23 January and made no progress on any of the outstanding issues: instead the MoD management side chose to focus on a pay circular issued by PCS to its members.

Recognising that the 1 May 2009 implementation date was rapidly approaching, with no resolution in sight, we set up a bilateral meeting with the Pay team on 31 March.

There we requested a delay in the implementation timetable, to allow both sides to utilise the Treasury Remit Guidance which we knew was to be published, and to explore every available option to mitigate our concerns. This was rejected out of hand, although the Pay team were unable to supply any reason why they were unwilling to do so.

PCS has been left with no choice therefore but to ballot on the offer, in time for the implementation date of 1 May 2009 and to make clear to our members that the agreement which we thought we had secured with the department has not been honoured.

We will therefore be recommending a rejection of the offer and campaigning to secure a no vote, to leave the department clear that staff and PCS have not conceded a collective agreement to reduce the pay of the lowest paid staff within the department.

We will also be exploring our legal options, as we believe the proposals as currently constituted will amount to a detriment to all staff at E1 and E2.

I therefore write to ask if, at this late stage, you would be willing to use your good offices to see if this unnecessary dispute can be avoided.

The PCS negotiating team, including our General Secretary, stands willing to meet you at any stage to explore possible solutions or ways to mitigate the impact of your proposals and can identify a range of options which we believe deserve further consideration.

I look forward to hearing from you.

 

Yours sincerely,


Chris Dando
PCS MOD group president
 


Annex 2 – Letter to Yvette Cooper, Chief Secretary of the Treasury

 

  Letter from Yvette Cooper