Public and Commercial Services Union

Members will have seen the letters from Gus O’Donnell and Dave Hartnett and the national PCS response. We promised a response to the letter to HMRC staff from Dave Hartnett which was issued the same day.

Mr Hartnett says that he suggested to the unions that if we accepted that the talks for 2008 were over and did not seek a new offer through a campaign of industrial action, HMRC could implement the pay offer and commence talks on the future shape of the pay system.

What Mr Hartnett does not say is that by accepting the 2008 offer we would also be accepting that the pay maxima of all grades would be capped by a 1% increase for each of the following two years. Our view is that PCS members would not want us to start talking about pay for 2009 if we have to accept from the outset that those on the maximum (almost two thirds of HMRC staff) would only get a 1% consolidated pay rise for the next two years.

Mr Hartnett refers to the imposition of the pay offer to staff in Grades 6 and 7 and in Band T, but not for other grades. PCS balloted all its members with a recommendation that the offer should be rejected and sought members’ agreement to industrial action. However, ARC indicated that it would not propose industrial action in opposition to the offer and recommended to its members that 2008 pay should be set aside in order to move on to focus on pay arrangements for 2009 and 2010. Both unions’ positions were the subject of ballots of their members. The employer made it clear that for grades in respect of which the two unions have joint recognition (ie. Grades 6/7 and Band T) it would accept the position of the union with the largest number of members in those grades (which is currently ARC). If the employer imposes the 2008 pay award at Grades 6/7 and Band T, then everyone in those grades will receive it, irrespective of whether they are members of PCS, ARC or indeed non-members.

All PCS members were balloted to support and take industrial action and this included all PCS members at Grade 6/7 and Band T. An overwhelming majority of PCS members voted in favour of action. We realise that this places PCS members at Grades 6/7 and Band T in a difficult position, including those who manage or work closely with colleagues at grades SO and below, who may be embarrassed at receiving the imposed pay award for 2008 when their colleagues have not. Clearly this situation is not of our making and it is disappointing that the employer should deliberately choose to adopt such a divisive approach. We hope that all PCS members resolve not to let themselves be distracted by the divisions created by the employer’s approach to the imposition of the 2008 pay award.

Mr Hartnett talks about ‘changes in the economic climate that are greater than anything that any of us has experienced before’. The public sector pay cap was around long before the recent economic situation. We were fortunate in being insulated from it to some extent as we negotiated a three year deal for 2005 – 2007, but the civil service pay constraints were announced in late 2007. All we have asked for is pay

levels that at least keep pace with inflation - anything less amounts to a worsening of our standards of living, rather than an increase in them. All this at a time when the department is in the middle of getting rid of 25,000 jobs, closing offices and compulsorily moving staff around the country. We note Mr Hartnett’s comments about ‘the quality of service we want to provide to our customers’, and damaging ‘the reputation of HMRC’. We will all have a view about whether it is the unions that are responsible for that. However, to be clear, PCS fully supports a well resourced department that is adequately staffed and equipped to deliver a quality public service.

Ultimately, the offer for the next three years is wholly inadequate, irrespective of grade. Inflation and the general economic downturn is impacting on all of our members, and we need to stand together if we are to challenge being so severely devalued by our employer.

Thanks for your support.