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Public sector HR must brace itself for storm ahead

After escaping virtually unscathed by the worst of the recession so far, HR teams in the public sector must now brace themselves for a storm heading their way.

Official labour market figures show that public sector employment actually increased by 250,000, or 5%, between April 2008 and April 2009. In the meantime, the private sector workforce reduced by 700,000 people.

But this imbalance will soon be corrected. The Chartered Institute of Personnel and Development has warned that at least 350,000 public sector jobs are likely to be shed over the next five years. Public Sector People Managers' Association president Gill Hibberd has raised the stakes, predicting the figure could hit almost 600,000 jobs.

What ever the final toll, it's clear that HR teams in local government and the wider public sector will have some difficult choices to make; protecting services as best they can while reducing headcount.

Let's hope that this bleak landscape leads the unions to a realistic stance over pay, pensions and conditions for their members. Demanding an annual pay rise, regardless of the economic situation, and refusing to counter any changes to the generous pension scheme, is simply not acceptable.

Delegates at Unison's annual conference in Brighton even raised the prospect of using measures in the new Equality Bill as a way of fighting job cuts and service changes.

All this makes good local level industrial relations vital and provides tough challenges for HR departments. No doubt we'll all be looking on with interest to see how they cope.

Mike Berry |

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