UNISON Local Government NJC Pay NJC Pay 2014 – 2015 Have your say on local government pay UNISON Local Government Service Group

UNISON Local Government NJC Pay NJC Pay Claim: Context  NJC – the poor relation of the public sector  Meagre1% NJC pay rise after 3 year pay freeze  Widespread redundancies and cuts to terms and conditions  Local Government facing unprecedented funding cuts – 40% by 2015  High profile pay campaign linked to possible industrial action as part of wider strategy

UNISON Local Government NJC Pay UNISON Options for the Claim Two alternatives agreed by UNISON NJC Committee for consultation: Option 1 – Living Wage (LW) hourly rate to be minimum pay rate, with an equivalent percentage increase on all other spinal column points OR Option 2 – Flat rate increase of £1/hour on all pay points which achieves the current Living Wage as bottom NJC spinal column point and a flat rate increase of £1/hour on all other spinal column points

UNISON Local Government NJC Pay An NJC claim based on the LW Both options are designed to provide:  Sector wide – not local - bargaining to achieve LW  Maintenance of equal pay proofed single status structures  Prevention of new rash of equal pay litigation  Clear focus for high profile campaign

UNISON Local Government NJC Pay What does Option 1 mean? A claim based on the Living Wage:  £1/hour on scp 5 = £7.45 – the outside London LW rate  Equivalent percentage increase for scp 6-49  Same increase throughout the pay spine  Addresses poverty pay at bottom and relative low pay throughout structure

UNISON Local Government NJC Pay What does Option 2 mean? A claim based on flat rate increase of £1 an hour  £1/hour on new bottom NJC scp 5 of £6.45 brings it to current LW level of £7.45 outside London  Simple and also leaves grading structures intact  But increases existing compression in middle and higher pay grades unless extension to spine

UNISON Local Government NJC Pay Options Compared

UNISON Local Government NJC Pay What is the Living Wage?  A wage sufficient to enable workers to live decently and raise their families without hardship  A benchmark figure currently set at £7.45/hour outside London and £8.55/hour in London  Below ‘official’ definition of poverty pay of £7.47/hour – not a fortune  Paid on a voluntary basis  Updated each November  LW employer expected to implement new rate within 6 months of announcement

UNISON Local Government NJC Pay Where are we at with the Living Wage?  Small – but – increasing number of councils have adopted LW  Implementation methods vary  Growing number of councils making pay awards above NJC and including LW  High proportion councils now considering LW  Talk of LW common across LG – important UNISON not lag behind  Aim is to achieve LW through collective bargaining and maintain single status pay structures

UNISON Local Government NJC Pay Why a LW claim this year: The Political Case  Growing public awareness and support for LW  TUC considering LW in Local Government campaign  Think tank research continues to spotlight LW – Compass/IPPR Living Wage Commission  High level political support pledged from Labour and supportive noises from Coalition

UNISON Local Government NJC Pay Why a LW claim this year: The Economic Case Clear macro-economic case for LW:  IFS study - benefits for the Treasury  Queen Mary College research - multiple benefits for employers Economic benefits for local community because high proportions of LG workers live in areas they work and spend locally:  APSE and CLES research on LW & higher local spending – every £1 spent generates further 64p

UNISON Local Government NJC Pay Why a LW claim this year: The Moral Case  Local government – the only sector with large numbers of employees below LW  LW is below official poverty level of £7.47/hour  Partnership working and transfer of public health staff puts spotlight on low pay in local government  LW as means to tackle rising inequality falling income and impact of poverty  LW as positive impact on social cohesion, health and future wellbeing

UNISON Local Government NJC Pay Why a LW claim this year: The Recruitment & Organising Case  LW campaign provides clear focus and morale boost for LG employees, members and activists  Branches, activists and paid officials will need to engage very directly with members and non members to explain campaign and commitment to ending poverty pay in LG  Recruitment potential of high profile LW campaign is clear  Option 2 has major recruitment potential

UNISON Local Government NJC Pay Is a LW claim realistic?  Councils and employers can’t have it both ways – local implementation of LW but no – or low – NJC increases  Many councils want to address pay of middle and higher earners  Councils are leaving – or threatening to leave – NJC to do better deals with staff  LW will boost morale and productivity

UNISON Local Government NJC Pay Is a LW claim affordable?  Local government pay bill has fallen for last 3 years in real terms and is now 23.09% lower  In the last year the gross pay bill fell by 10%  Many councils have significant reserves  School funding has been protected - although not inflation proofed  The LGE has mooted a ‘clean up’ of the NJC pay spine to get money into the system  LG section is modelling implementation options

UNISON Local Government NJC Pay Your pay – your say  Branches are asked to consult as widely as possible – return results to regions by 4 October  The UNISON NJC Committee will consider results on 11 October  GMB and UNITE are ending their consultations to a similar timetable  The NJC Trade Union Side will agree contents of the claim on 15 October  It’s time to end poverty pay in local government!

UNISON Local Government NJC Pay