Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Employee relationsEconomics, government & businessHR strategyTrade unionsPay & benefits

Radical approach must be taken to resolve public sector pay crisis

by Personnel Today 4 Feb 2008
by Personnel Today 4 Feb 2008

In case you haven’t noticed, there is a not-so-secret campaign being waged by the government to directly control the management of public sector pay deals. The economy is moving into uncertain territory, which always makes governments nervous, but does it give ministers the right to undermine established mechanisms for collective bargaining?

Yes, collective bargaining is arcane, and yes, we need a fresh look at how the public sector is rewarded, but not by making sweeping statements that leave some employers floundering in the midst of current pay disputes, and others trying to prepare for the next pay round.

Council tax is predicted to rise, on average, by 4% this year as local authorities seek to ensure they can continue to deliver services. Such increases are generally in line with the retail price index, which is calculated with mortgage and council tax payments factored in. The three-year pay deals for the public sector, however, are consistent with the government’s intent of keeping inflation at 2%, based on the consumer price index. This just so happens to exclude, you guessed it, council tax and mortgage payments.

Unpaid delivery

For the average public sector worker, this is a real kick in the teeth. The government is effectively saying to millions of staff that it expects them to deliver services more efficiently and effectively for pay that will not reflect their biggest personal expenditure, and will take no account of economic changes over the next three years.

I’m not a staunch trade unionist. But I am concerned about the impact such statements have on the psyche of public sector staff, and the ability of employers to recruit and retain high-quality employees to deliver services to some of the most vulnerable people in society. The government is creating deeper divides between employers and unions, which neither side wants, by making unilateral statements without first consulting and assessing the impact such policy decisions may have. It may also lead to more employers opting out of national pay bargaining to look after their own interests and those of their local taxpayers.

The position isn’t the same across the UK in some areas there are long-standing differences in pay levels in some parts we have full employment and there is strong competition for jobs in the local labour market. Combine this with uncertain national pay arrangements, and employers will vote with their feet, dealing with pay themselves.

Putting a more objective and pragmatic view on the government announcement, what would three-year pay deals actually look like? Importantly, a multi-year settlement would help public sector employers manage their finances more effectively and plan the deployment of resources in a more strategic manner. Being subject to annual settlements can mean that margins for error creep into forward planning. On that basis, I support the intent of financial and industrial stability that a three-year deal could bring.

Public sector employers also need to recognise that with economic slowdown there simply will not be any new money, and settlements have to be tempered against affordability criteria. I’m sure we could all arrive at this conclusion after a protracted struggle between employers and unions, which may produce small movement at the margins, but the settlement will broadly be the same. All we can then look forward to is a life in almost constant dispute.

Reward package

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

The government urgently needs to sit down with employers and unions and look at the total reward package (and total cost) of the public sector workforce, and be prepared to mix up some of the elements to achieve change. The time has come for something a little more radical and creative, and I would urge all parties to accept some of the realities – as harsh as they may be – and get on to find a way forward that produces a win-win for the workforce and the communities it serves.

Stephen Moir, director of people and policy, Cambridgeshire County Council, and president of the Public Sector People Managers’ Association

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

previous post
AUDIO – Learning Technologies 2008: a look at e-learning
next post
Recruitment agencies defend £1.18bn NHS temporary nurse bill

You may also like

Unions ponder strike action after public sector pay...

23 May 2025

Public sector workers gain pay rises of up...

22 May 2025

UK net migration slashed by half in one...

22 May 2025

Deloitte scales back salary rises and promotions

22 May 2025

Workplace stress: Why it’s time to rebrand resilience

22 May 2025

Pay awards in real terms could fall for...

21 May 2025

Ryanair demands flight attendants pay back salary increase

21 May 2025

Public sector needs 92,000 more workers to remain...

19 May 2025

Minister defends Employment Rights Bill at Acas conference

16 May 2025

Next to improve wage-setting transparency after shareholder pressure

16 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+