James Lazou Research Officer

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Presentation transcript:

James Lazou Research Officer Local Authorities NISC Understanding the Pay Offer James Lazou Research Officer

Joint Union NJC claim The deletion of NJC Spinal Column Point (SCP) 6-9 to reach the Foundation Living Wage now £8.75 (UK) and £10.20 (London) A 5% increase on all NJC pay points Progress on reform of the spine

Main arguments Staff have endured 8 years of pay cuts Workers are thousands of pounds worse off due to the Government pay cap Inflation is set to remain over 3% for the next few years Local authorities are a low paying sector Low pay in local authorities is deepening the gender pay gap Pay rise is good for the economy

Real terms loss of earnings Between April 2010 and April 2017 (loss of 21%) SCP 6: 50p per hour worse off £965 worse off per year Has cumulatively lost £11,961 pounds in total SCP 49: £4.88 per hour worse off £9,424 worse off per year Has cumulatively lost £53,452 pounds in total SCP 21 : £2.25 per hour worse off £4,332 worse off per year Has cumulatively lost £24,568 pounds in total

The offer: Year 1 From 1 April 2018 Pay rise Equivalent to SCP 6 £1,380 9.191% SCP 7 9.130% SCP 8 9.052% SCP 9 8.976% SCP 10 £1,250 8.006% SCP 11 £1,200 7.592% SCP 12 £1,050 6.512% SCP 13 £900 5.458% SCP 14 5.363% SCP 15 5.272% SCP 16 5.167% SCP 17 5.064% SCP 18 £800 4.427% SCP 19 £700 3.734% SCPs 20 and above 2.0%

The offer: Year 2 From 1 April 2019 Introducing a new spine with the following changes: A bottom rate of £9.00 per hour (£17,364) new SCP1 ‘Pairing off’ old SCPs 6-17 to create new SCPs 1-6 Equal steps of 2.0% between new SCPs 1 to 22 Introduce new SCPs 10, 13, 16, 18 and 21 to which no old SCPs would assimilate. New pay points will change the current number of pay points in a grade. Employers call for joint working New SCPs 23 and above 2.0%

Issues to discuss: Political context The offer has not been funded by the Treasury and no new money was announced in the Autumn budget Council elections are coming up in May The Labour group pushed this offer through against the Conservative leadership of the LGA So far other public sector staff have not received higher offers than those proposed here

Inflation is forecast to rise by nearly 18% by 2021 Average City Economists Forecasts   Latest inflation forecasts (RPI) for April 2018 are 3.6% Latest inflation forecasts (RPI) for April 2019 are 3.3% Source: IDR Pay Climate, December 2017 Source: HM Treasury Forecasts for the UK Economy, February 2017

FTE per 2017/18 SPC Over 2 years Real terms pay cut 50% of Council’s already pay the Living Wage Many do this as an additional supplement Real terms pay rise 2017: Current below the LW 2018: Below the LW April 2019: Lowest pay point £9 (projected LW)

For most it is still a pay cut in real terms

What happens to the pay systems? Will employers use the new spine to claw back savings through reviewing pay and grading structures? Some grades will now have increased numbers of pay points. What will this mean for progression? Will other terms and conditions be targeted?

Discussion