As you are aware, the pay dispute for 2008/09 has been referred to arbitration and resolution by ACAS in the immediate future. Further updates will be provided on this claim as we get them.
In the meantime, we are consulting with members over options for the 2009/10 pay claim which, in line with conference decisions, must be submitted in early November 2008.
Context for the claim
The consistently high level of inflation over the past twelve months has had a damaging effect on the standard of living of all local government workers. Large inflationary pressures in key areas such as, food, fuel and energy, transport and council tax support our evidence for a substantial pay award. This is particularly important for low paid staff who proportionately suffer far more for any cost of living increase than those on the higher pay bands and in better paid bargaining groups within the public sector.
The unaffordability argument presented by local government employers runs contrary to the huge efficiency savings that councils have made over recent years and the £3 billion reserves currently held in unallocated funds. Reserves have risen again in the last year and stood at over £12 billion.
Economic factors
RPI inflation is at its highest level for many years and stood at 5% in July before falling back slightly in August. Below are the key indicators for your consideration:
- RPI: 4.8% - CPI: 4.7% in August 2008. CPI, which excludes housing costs, has risen to meet RPI as housing costs, included in the RPI, have fallen
- RPI is predicted to fall back to 4.7% in the fourth quarter of 2008 and continue to fall back throughout 2009, averaging 3.3% over the year as a whole. However, the (daily) instability of the world economy makes prediction highly problematic and unreliable
- Earnings in the private sector rose at a headline rate of 3.5% in the year to July 2008, compared with 3.3% in the public sector
- In the year to the end of August 2008, the median public sector pay award was 2.5%, compared with 3.5% in the private sector
Options for the 2009/10 claim - please let us know what you think!
Question 1
Do you want a claim for a ‘specified pay increase' or ‘a substantial increase of no less than the March 2009 Retail Price Index inflation level'?
Question 2
Should the claim include bottom loading? Bottom loading means having a claim with a minimum salary increase for the lower grades.
Question 3
Should we separate a claim for improved conditions from the pay claim?
WE WANT YOUR VIEWS! PLEASE RESPOND TO THE EMAIL ADDRESS BELOW.
