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Public services in the aftermath of the economic crisis: how social dialogue influences changes in public sector employment relations in the UK Stephen Bach Alexandra Stroleny King’s College London
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Introduction 2010: Conservative-led Coalition focus: fiscal consolidation qualitative: familiar Conservative Party themes of outsourcing, local pay and deprivileging PS IR quantitative: sharp reductions in public expenditure PS employment cuts + incomes policy based on a two year wage freeze limited scope for workforce engagement & dialogue with PS trade unions
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Austerity - Drivers 1.Deficit speed & depth 2010 Comprehensive Spending review: -Aim: deficit reduction: 2009: 8.4% of GDP 2015: 0.4 % 2. Ideology + underlying economic assumptions No consultation with TUs + employers prior to announcement of wage freeze -three quarters of deficit reduction linked to public spending cuts
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Planned cuts to UK spending: historical record – IFS 2012
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General Government Employment – OBR: March Forecast
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Measures - Wages 2- year pay freeze (2011-12 & 2012-2013 ) 2 years: pay awards - 1% cap across all areas of PS, staff earning £21,000 or less: some protection progression arrangements - annual pay increments average PS pay still growing in nominal (but not real) terms Pension changes 30 th Nov strike some concessions dispute settled in local gov, partly in civil service, remains unsettled in NHS
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Local Government LGA (Local Government Association) NJC (National Joint Council for Local Government Services) Local auth. = greatest formal employer autonomy + discretion over how match pay scales to national negotiated pay spine ‘single status’ national framework (‘Green Book’) -some local variation – Part 2 vs. 3
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Local Government 2010 staffing reductions, changes in allowances for working anti-social hours, reduced mileage rates for car users, reduced sickness entitlement & annual leave explicit trade-offs offered to workforce reg. contractually entitled incremental progression staff ballots – different outcomes Section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992
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Case Studies Southampton City CouncilOxford City Council Background (Political Control; Location) Conservative, South-EnglandLabour, South-England Social DialogueNoYes Union exclusionYesNo Employment ReductionManyFew Pay ReductionsYes, unilaterally imposedYes, by agreement Changes to terms & conditions Yes, unilaterally imposedYes, by agreement Degree of concession bargaining LowHigh Communication & participation No TU: industrial actionYes, through many channels
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Challenges Employers more assertive: austerity => seeking changes challenge of maintaining staff engagement & morale HR capabilities to manage change effectively ? TU weaker (membership + density => fall) options: 1.concession bargaining 2.not engage with employers 3.Attempt to mobilise & risk marginalisation
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Conclusion Quantitative: job cuts, wage freeze; shrink state Qualitative: expansion of a variety of providers, erode national systems of collective bargaining Social dialogue: Nationally – limited Locally - variations
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