For council and school workers This powerpoint is to help you explain the pay offer to members and encourage a good turn out in the consultative ballot. UNISON is by far the biggest union in councils, schools and academies. We are leading the fight for a better pay offer. For council and school workers NJC Pay Offer 2018-20

Trade Union Side Claim 2018-2019 Trade Union Side claim submitted in June 2017. UNISON, GMB and Unite asked for: The Foundation Living Wage as the lowest scale point 5% on all scale points after the Foundation Living Wage applied The 2018 claim is set out on this slide. It represents the three unions’ aspiration to achieve the Foundation Living wage as the lowest NJC pay point by deleting scp 6-9. The 5% increase on all NJC pay points is to reflect inflation and provide some catch up on lost earnings.

NJC pay offer 2018-2020 Key features: Two-year ‘final’ offer from 1 April 2018 – 31 March 2020 Incorporates joint review of NJC pay spine Increase on lowest scale point (scp) 6 = 15.65% Increase on scp 29 and above = 4.04% 4.04% increase also on scale points above scp 49 Presenter should refer to the members’ leaflet, which should have been circulated. Key features of the offer are Two-year ‘final’ offer from 1 April 2018 – 31 March 2020 Incorporates joint review of NJC pay spine Increase on lowest scale point (scp) 6 = 15.65% Increase on scp 29 and above = 4.04% 4.04% increase also on scale points above scp 49. This includes members in scope of the NJC paid above the maximum of the NJC pay spine i.e. those graded below deputy chief officer level. Its the best offer in the public sector so far Other offers Police 1% on all pay points from 1/9/17, 1% on standby, 1% non-consolidated and deletion of bottom 2 pay points. Probation: no cost of living increase offered. Just contractual incremental progression and non consolidated payment for those of top of band. Worth up to 1% FSA: 1% across the board, plus 1% on min and max. Accepted CQC: 1% progression award for those below max, £8.45p minimum, non-consolidated 1% for those who don’t get progression award. Accepted

Background to the pay offer Strong support from the LGA Labour Group And the Shadow Cabinet Lots of political lobbying... LGA Labour Group forced a vote on the Employers Side Lib Dems voted with the Tories who wanted 1% in each year The offer is the product of a lot of political campaigning . We gained strong support from the LGA Labour Group and the Shadow Cabinet. We asked you at local & regional levels to lobby politicians to highlight the issues surrounding NJC pay to make the case for funding. We asked you to do all you can to get our motion to councils on NJC pay discussed. There was a model letter on the website for members to send to councils. All this was very helpful. At national level the Joint Secretaries wrote to the PM Chancellor & Communities secretary. Four letters were sent to the Chancellor which were unanswered. The offer was received unexpectedly on 5 December after Tory councillor leaked to shire counties and others The Labour Group forced a vote on the Employers Side on the offer. The Independent and the Wales LGA members voted with them. The Lib Dem member voted with the Tories. Who wanted to offer 1%.

NJC Pay Explained The NJC pay spine – pay points from scp 6-49 Used by councils and schools to construct their local pay grades – many variations UNISON with GMB and Unite submit a pay claim to the Local Government Association who represent employers in negotiations The pay increase is applied to the NJC pay spine London and a few other councils have their own pay spines This is an optional slide. We know many members don’t understand how their pay is negotiated. They confuse NJC scale points with their local grades. the basic pay of each employee consists of a pay point or points on the NJC pay spine – called spinal column points - scp. The bottom of the NJC spine starts at scp 6 and the top of the spine is scp 49. Each council or school uses the NJC pay spine to construct their local pay grades, although some adapt it. Some employers start their bottom grade on a scp above scp 6 and many extend the NJC spine locally above scp 49. Some employers don’t use all scps UNISON together with GMB and Unite submit a pay claim for a cost of living increase to be implemented in April. We negotiate with the Local Government Association who represent councils. UNISON’s NJC Committee decides our pay strategy in negotiations and has agreed to consult members on this pay offer If accepted, the pay increase will be applied to the NJC pay spine. The branch will advise how increases apply to your grades London and a few councils do not use the NJC pay spine because they have their own pay spines. The NJC increases are translated across onto these pay spines.

Principles of the offer Designed to: Give ‘headroom’ above NLW End compression at bottom of pay spine Create even 2% gaps between scp’s.. ...though offer only up to new scp 22 (old scp 28) Employers recognised doing the minimum to be legally compliant to accommodate NLW increases would result in pressure to undertake pay and grading reviews as pay differentials above collapse. And be unsustainable in the long run Pay offer is designed to give headroom and stability and end compression at the bottom of the pay spine Graphic way to demonstrate the increased headroom is to compare the difference between the NLW and the bottom NJC rate. In 2016 NJC pay was just 0.3% above. Bottom loading in the last settlement saw the difference increase to 4% in 2017.The impact of the offer is to make the bottom NJC pay rate 9% higher than NLW in 2018 and 10% higher in 2019. The current pay spine contains unequal steps between scale points & so is neither transparent nor fair. The pay offer doesn’t ‘clean up’ the pay spine all the way up – just to midway. The unions have made it clear we want to return to that . Because at the top end, many local authorities have locally extended their pay spine well above the top to address job compression.  

The offer - year 1 Scp 6 - Increase from £7.78 to £8.50 = 9.19% Scp 12 – From £8.36 to £8.90 = 6.51% Scp 19 – From £9.72 to £10.08 = 3.73% Scp 20 and above – 2% This slide sets out the offer for year 1 for selected scp. Those on scp 6-19 are offered lump sums equivalent to 9.19% - 3.73% Scp 6 – the hourly rate Increase goes from £7.78 to £8.50 - a 9.19% pay increase. An example job is a cleaner. Scp 12 – its from £8.36 to £8.90 - a 6.51% pay increase. For example a cleaning supervisor Scp 19 – From £9.72 to £10.08 = 3.73% - For example a general teaching assistant Scp 20 and above the offer is 2%. Including those paid above the maximum of the NJC pay spine

The offer - year 2 New pay spine kicks in Bottom rate of £9 per hour on new scp 1 – higher than AfC, Police and Probation Old scp’s 6-17 ‘paired off’ to create new scp’s 1-6 incl. 2% gaps between new scp’s 1 – 22 incl. New equal steps mean new scp’s 10, 13, 16, 18 and 21 2% on new scp’s 23 and above In year 2 the new pay spine kicks in. The bottom rate is set at £9 per hour on new scp 1 is higher than the bottom rate in AfC, Police and Probation The spine is then cleaned up to new scp 22 by establishing 2% incremental differences between each new scp i.e. Between scp 1-22. Assimilation to the new scp is on the basis of no detriment Old scp’s 6-17 ‘paired off’ to create new scp’s 1-6 incl, so old scp 6 and 7 create new scp 1 etc 2% gaps between new scp’s 1 – 22 incl. New equal steps mean new scp’s 10, 13, 16, 18 and 21 The clean up of the pay spine stops at scp 22. There is a 2% cost of living increase on new scp’s 23 and above. Including those above the NJC pay spine

Year 2 continued New scp 1 increase = 5.92%/5.27% News scp 23 and above increase = 2% This slide sets out for some scp the pay increases members would receive in this year through having even differentials of 2% : New scp 1 increase = 5.92%/5.27% (old scp 6 & 7) New scp 4 increase = 7.3%/5.95% (old scp 12 & 13) New scp 8 increase = 2.57% ( old scp 19) New scp 12 increase = 2.44% (old scp 22) News scp 23 and above increase = 2% ( old scp 28 and above)

Cumulative increase in pay over 2 years New scp 1 = 15.65%/14.88% New scp 4 = 14.28%/11.73% New scp 8 = 6.40% New scp 12 = 4.49% New scp 23 and above = 4.04% This slide sets out the 2 year increase in pay for selected scp New scp 1 = 15.65%/14.88% (old scp 6 & 7 – cleaners, catering assistants ) New scp 4 = 14.28%/11.73% (old scp 12/13 cleaning supervisors, cooks) New scp 8 = 6.40% ( old scp 19 – teaching assistants) New scp 12 = 4.49% ( scp 22 – customer services officers) New scp 23 and above = 4.04%

Greater London Greater London Provincial Council (GLPC) has two separate pay spines – inner and outer They include consolidated London Weighting ‘Translation’ of the offer for London received London is part of UNISON consultation The pay spine for NJC employees in London is different from the one for other NJC employees. There are two spines – inner and outer and they include consolidated London Weighting Normally the NJC offer would be applied to the London pay points. However given the restructuring of the NJC pay spine, discussions took place between London employers and trade unions to translate the offer into an equivalent London offer The London translation was received 22 January. In time for the UNISON consultation.

UNISON says REJECT UNISON’s NJC Committee is recommending members reject the two-year 2018/20 pay offer. The Committee believes that the offer falls short of our claim However, the Committee is clear that the offer is the best achievable by negotiation and that nothing short of substantial, all-out strike action could have the potential to improve the offer The NJC Committee met in December to consider the offer. It decided not to press for further negotiations but to consult members on it. It is a complex offer. The Committee decided to hold regional briefings to explain the offer. before making a decision about it. The Committee met on 23 January to decide its recommendation to members on the offer and the UNISON consultation arrangements. The Committee is recommending members reject the offer as it falls short of our claim. But the Committee is clear that the offer is the best achievable by negotiation and that nothing short of substantial, all-out strike action could have the potential to improve the offer. All out strike action is all members taking action at the same time

UNISON says REJECT Inflation is predicted as 2.9% in the first quarter of 2018 and 2.8% in the first quarter of 2019 meaning: Two-thirds employees get below inflation increase in 2018 Nearly half of employees get below inflation increase in 2019 Higher increases have to be paid to give headroom above National Living Wage Those on Foundation Living Wage will not benefit as much Central government should fund the pay increase Inflation is currently 4.1%. It is predicted to fall to 2.9% in the first quarter of 2018 and drop further to 2.8% in the first quarter of 2019. This means the pay increase in 2018 will be below 2.9% for about two thirds of local government workers. In 2019, nearly half will receive an increase below the predicted rate of inflation, so both groups will effectively receive a pay cut   The increases for the lower paid are only being made to provide headroom above projected increases in the National Living Wage . The NLW will be £7.83p from 1 April 2018. The Low Pay Commission will recommend a new rate for 2019, when inflation is predicted to be 2.8%. A 2.8% increase in 2019 would give a new rate of £7.74p. Almost two thirds of councils now pay the ‘real’ Foundation Living Wage of £8.75p outside London and £10.20p in London so the pay offer will not benefit many local government employees. UNISON is campaigning for central government funding for the offer. Research for UNISON by the New Policy Institute shows that almost half the cost of our claim for local government workers would be met from higher tax and National Insurance income for the Government and reduced in-work benefit costs

Funding the offer LGA says that council budgets will have been cut by 75% by 2020 65% now spent on social care English and Welsh Local Government Settlements 2018 -19 did not include a new element for the NLW or the pay offer But many councils have ‘unallocated’ reserves Some schools too The backdrop in terms of local government finance is challenging. the LGA says that council budgets will have been cut by 75% by 2020 65% of funding is now spent on social care Neither the English or Welsh Local Government Settlements 2018 -19 included a new element for the National Living Wage or the pay offer In England and Wales unallocated reserves in many councils are still buoyant. In some schools too. We wouldn’t argue for using unallocated reserves on pay on a regular basis. But as a one off – for pay restructuring – it is a legitimate use of reserves

UNISON, GMB and Unite consulting to same timetable UNISON’s consultation starts on 29 January and ends on 9 March GMB is consulting on ‘best achievable by negotiation’ through all-member postal ballot Unite is also recommending rejection UNISON NJC Committee meets on 16 March to consider responses We need a high UNISON turnout so we have an accurate picture of members’ views. It’s YOUR union and YOUR pay! UNISON’s consultation started on 29 January and finishes 9 March. Its being conducted by our branches in line with our Pay Consultation Procedures. Branches are being asked to consult all members on NJC pay, preferably by ballot, using the questions agreed by the NJC Committee to put to members. Doing it this way means branches can engage with members to explain how the offer applies to them locally. Different councils and schools have different pay structures. GMB are doing an central postal ballot to members. And are consulting on the basis the offer is best achievable through negotiation. Unite are recommending rejection. The three unions aim to respond to the employers in March. UNISON’s NJC Committee is meeting on 16 March to consider the results of how UNISON members have voted. And to decide next steps. Its vital we have a high member turnout. So the NJC Committee has an accurate picture of members’ views. Its YOUR union. YOUR pay.