A 1% OFFER IS A 2% PAY CUT

Branch Urges you to Reject

If your pay rise is set by the National Joint Council (NJC) for Local Government Services then we will soon be consulting you about the NJC Employers’ side pay offer for 2013/14.

After many years of below-inflation pay rises; followed by 3 years of a total pay freeze; followed with severe pay restraint this year; and more already set out by this government for at least a further 3 years it is genuinely important that all our members take part in this consultation.

The offer is a derisory 1%. At the very top of the NJC pay spine it is onlyPeanut Pay Packet worth around £6.10 per week after deductions. As ‘compensation’ for the pay freeze that we have already endured this works out around £1.52 per week averaged over the 4 year period. For the 1 million NJC workers who earn less than £21,000 per year it is a measly £3.05 per week after deductions, or around just 76p per week averaged over the 4 year period. For the half million of those workers earning below £15,000 per year it is even less.

With inflation at 2.8% (CPI) and 3.3% (RPI) it is glaringly obvious this pay offer is actually a pay cut of around 2%. It is little wonder that our living standards have plummeted by over 16% since 2010 and that in real terms our pay is now worth more than 10% less than it was in 1996. And for those of us in pension schemes linked to earnings this continual drop in pay will hit us for the rest of our lives, unless we do something about it.

The UNISON NJC Committee, made up of UNISON members elected by their Regions or other bodies, agreed at its meeting on 7 May 2013 the NJC Employers’ below-inflation pay offer falls far below our aspirations and what we deserve. The Committee also believes that as things stand it is the best offer achievable by negotiation. Heather Wakefield, our National Secretary for Local Government, told The Municipal Journal the unions unanimously deplored the deal as falling way short of expectations. In a recent article for Public Finance Heather also said, “It seems that, without a fight, there will be little scope for sector-wide pay negotiation at all until after the 2015/16 pay round”. That shows how serious the situation has become – we are effectively talking about whether ‘national’ pay bargaining has any future because things have now got so bad.

A pay offer at a third of inflation would be a slap in the face at the best of times. But NJC workers are already the lowest paid sector and it is getting worse by the month. In a recent survey of local government members UNISON found that 53% were in debt, with 11% owing more than £20,000.

That is why UNISON is now consulting members on whether or not to accept the offer or reject and commit to a programme of sustained industrial action.

The Regional Service Group is made up of representatives from all our North West local government branches. At its meeting on 9 May we unanimously agreed to urge all our members to engage in the consultation and to reject this insulting offer.

In Scotland UNISON members have already decisively rejected a 1% offer and are moving towards an industrial action ballot. We now have the opportunity to do likewise in London, the rest of England, Wales and Northern Ireland.

This is not something we take lightly. We are members ourselves and we know the fears over job security and the pressures of restructures and extra work. We deal with this day in and day out. But accepting poverty pay levels – and two thirds of all NJC workers fall beneath this government’s own low pay threshold – is not saving any jobs. Nearly 400,000 have gone in local government since 2010 and London has been badly hit. The forecast is not getting sunnier anytime soon so having our living standards decimated is not a trade for job safety.

UNISON has produced and commissioned reams of research showing how bad the situation really is. As UNISON members we know that because we are living it. Nobody is disputing it. The NJC employers don’t dispute it. The government doesn’t dispute it. But currently they will not do anything about it. So as it stands we only have ourselves to turn to. If we do nothing, we can expect only more of the same – we cannot just wait and hope for a change of heart. It isn’t going to happen, unless we take the initiative to make it happen collectively.

We need to be prepared to campaign and take action for fair pay because we deserve fair recognition of our value and we deserve dignity. The choice is in our own hands.

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Proposed 1% Pay Incease: What does it mean?

In the 2013 budget Chancellor George Osborne called the proposed 1% pay increase for public workers a “rise cap” but now it been offered it is called a “pay rise”.

But what does 1% mean for UNISON members?

You can see a comparative pay table here showing how much salary would increase.

The NJC Employers’ offer is 1% on all spinal column points with effect from 1Woman with Coinc April 2013. Spinal Column Point 4 will be deleted with effect from 1 October 2013 as the National Minimum Wage increase (already set) would otherwise overtake SCP4 at that point.

Inflation figures for March 2013 are 2.8% (CPI) and 3.3% (RPI). The April figures are due for release on 21 May 2013. Over the past 12 months CPI has averaged 2.7% and RPI has averaged 3.2%.

At the very top of the NJC pay spine (SCP 49) the offer is only worth around £6.10 per week after deductions for full time working. As ‘compensation’ for the pay freeze that we have already endured this works out around £1.52 per week averaged over the 4 year period.

For the 1 million NJC workers – two thirds of the workforce – who earn less than £21,000 per year (equivalent to SCP 24 at full time working) it is worth around £3.05 per week after deductions, or around just 76p per week averaged over the 4 year period.

For the half million NJC workers – one third of the workforce – earning below £15,000 per year (equivalent to SCP 12 at full time working) it is even less, around £1.94 per week after deductions, or around 48p per week averaged over the 4 year period.

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Academic Question

Why are school choosing to become Academies?

Two of Kensington & Chelsea’s schools have come forward with plans to convert to academy status by September this year.

Both Park Walk Primary School and Holland Park Secondary School andSchoola Class currently going through the process of becoming academies. But why are schools choosing to become academies?

Since the introduction of the Academies Bill in May 2010 there has been huge political pressure for schools to covert. In fact the Secretary of State for Education, Michael Gove MP, is on record as wanting all schools to be academies by 2015.

Up to now nationally over half of secondary schools have chosen academy status, but only about 6% of primaries have done so.

Download the Anti Academies Alliance quick guide to academy schools here.

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UNISON Wins Legal Battle for Pay

[Anderson & Ors v London Fire & Emergency Planning Authority [2013] EWCA Civ 321]

 UNISON has won a 4 year battle for pay justice which could affect around 800 union members working for the London Fire and Emergency Planning Authority (LFEPA). The union challenged the LFEPA’s decision not to honour the third year of an agreed pay deal that would have given fire and rescue staff a 2.5% pay rise in April 2009.

 The branch had agreed a threeFire Union year pay deal with the employer in July 2007. Increases for the first two years were set as 2.8% on 1st April 2007 and 2.75% in April 2008. In the tried year the employer agreed to pay 2.5% or the equivalent of the NJC (National Joint Council for Local Government Services) settlement plus 1%.

 When 2009 arrived the NJC settlement was extremely low and so the LFEPA decided it was not obliged to pay the pre-agree 2.5% and instead offered 1.825% which was based on the NJC settlement plus a little more than the 1% increase. This was rejected by UNISON members and they eventually paid a non-agreed 1.575% which was the amount to ensure the general pay increases were 1% above the NJC’s for 2007-09.

 The branch took the view that while not explicit; the commitment was to pay whichever was the higher of the two amounts. As a result they launched an unlawful deduction of wages claim on behalf of the members first to an Employment Tribunal (ET) and then to an Employment Appeal Tribunal (EAT).

 The ET agreed with the employer’s submission that it was only an agreement to agree as there was no indication as to which of the alternatives for 2009 took primacy.

The EAT dismissed an appeal but for a different reason, which was that the employer had ‘fulfilled their contractual obligation by paying in accordance with one alternative’.

Therefore at this stage both attempts failed as the courts found in favour of the employer.

 UNISON persisted and appealed both decisions to the Court of Appeal last month (in April 2013). There the two previous decisions were overturned. Maurice Kay LJ, giving the lead judgment in this appeal, stated that since the purpose of the agreement was to settle a 3-year pay deal, it must been seen in light of an employment relationship. As a result the obvious aim and agreement was that employees should ‘receive an increase of 2.5% or NJC plus 1%, whichever was the greater’.

It was summed up as follows:

 “The idea that the unions would agree to a three-year deal in which the third year was covered by two alternatives, and that the employer should have unfettered right to choose between them strikes me as fanciful. I am quite sure that it would have struck the employers as equally unrealistic…such a construction flouts industrial common sense”.

 A full transcript of the appeal can be found here.

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UNISON Wins Six-Figure Compensation For Play Workers

Camden UNISON has secured a payout of around £106,000 for 74 former play service workers following a claim for compensation for unpaid annual leave, and is now looking into other hourly-paid casual staff.

Prior to the closure of Camden’s in-house play service, Camden UNISON raised claims on behalf of casual play workers and play workers who worked a substantial number of additional hours, who contended they had not received holiday pay.

After several months of negotiations, the Council agreed to pay compensation to these workers of up to £4250 each with the average payout being over £1300.

This is in addition to enhanced redundancy pay which UNISON achieved for 7 employees who worked casual or additional hours worth up to £4500, and back pay for unpaid antisocial hours enhancements worth up to £2000 each for 10 workers.

This shows the importance of being a member of a union, especially in these hard financial times.

UNISON believes that other hourly-paid or casual staff (often referred to as “sessional workers” ) may also have not received holiday pay.

Legally, all workers are entitled to paid annual leave, even if they are casual, sessional, hourly-paid, zero-hour contract or agency workers. This is clearly set out in the ACAS guidelines here.

If you are a casual, sessional or hourly-paid worker, make sure you are receiving what you are entitled to. Join UNISON today and join our campaign for fair treatment for casual workers!

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Pay Update – Employers’ New Offer

Following UNISON’s rejection of the two ‘options’ in first pay offer, the Local Government Employers (LGE) have returned with a final offer in writing on 25 April (see here).

The revised offer is:

  • 1% on all pay points from 1 April 2013
  • Deletion of scale point 4 (the bottom pay point) from 1 October 2013

We think given that inflation is 3.5% and has been around this level for the last four years this offer represents a pay cut in real terms – in fact effectively a 13% paycut.

Time To Take A Stand

English councils have increased their reserves by £4.5bn over the last five years to almost £13bn, despite cuts to funding. The money is there to pay for a decent pay increase for all local government workers and therefore we believe that the employer needs to offer a  substantial pay increase. Only this can address the scandelous issue of low pay (of the working poor), the growing cost of living and go some way to redress almost half a decade of wage repression.

Impact on Scale Points

The impact of the offer on each scale point can be seen in the indicative scales here.

There are around 28,000 employees – mostly women working part-time – onPay Matters scale point 4, who would move onto the revised scale point 5 in October. This would mean a 1% increase for them between April and 30 September and a further 1.4% increase on 1 October. Overall they would move from £6.30 to £6.45 – a 2.4% increase.

Negotiation Process

In their letter to the Joint Trade Union Side Secretaries, the LGE made a number of other points:

  • The NJC is “the body best placed to deal with relevant employment issues arising from the huge amount of change that local government is undergoing…”
  • They are disappointed that the unions “have been unable to consider even the most minor elements of reform”
  • Because the unions have not been willing to negotiate ‘reform’ of the Green Book, it is “highly probable that the NJC will find itself in a situation whereby future national negotiations are held solely on the issue of pay, unless you significantly alter your stance”
  • The  employers “ value highly” joint work on the LGPS, the NJC JE scheme, the public health transfer and pay and career development for social workers
  • The employers “will shortly be seeking the views of councils and regional employers on the future ability of the national machinery to reform terms and conditions” and will have further discussions with the unions on this

While we welcome the LGE’s continued commitment to the NJC, we would make the following points in response to the Employers’ suggestion that the unions have not been prepared to engage in negotiations over Green Book conditions:

  • NJC conditions are the worst in the public sector. Basic annual leave is just above the statutory minimum and worse than every other sector. The same applies to parental rights
  • The NJC Committee and the Trade Union Side have both agreed  that the unions should not enter into negotiations at NJC level to cut Part 2 conditions – sick pay, annual leave or car allowances
  • Half of councils have ended NJC mileage allowances and moved our members onto HMRC rates. For those who do significant mileage as part of their jobs, this means subsidising their employer on top of a three-year pay freeze and other cuts to conditions
  • Around 30% of councils have cut unsocial hours payments and/or overtime pay – with a massive effect on low paid women workers in particular
  • Over 25% of councils have cut pay at a local level and others have imposed unpaid annual leave
  • More and more councils are charging for car parking – adding insult to pay cut misery
  • UNISON and the other unions have made proposals to improve parental rights, establish a ‘gender agenda’ for local government and a green transport policy that properly rewards members for use of cars, while including public transport, bikes and motor bikes
  • The LGE response has been to say that any improvements would have to be funded by cuts elsewhere and would not be applied to councils who have already cut those conditions!!! Effectively, they would not become part of the Green Book
  • The allegation that we have not been prepared to discuss ‘reform’ is untrue, but we have not been provided with the opportunity to discuss positive reform to bring NJC workers in line with other public sector groups. ‘Reform’ for the LGE means ‘cuts’.  For UNISON, it means negotiating for fairness and equality across the public sector

The role of the NJC

  • Like the employers, UNISON strongly supports sector-wide bargaining in local government through the NJC because it is the most likely way to ensure the same pay for the same jobs across Regions and local labour markets and protect those in low paying areas
  • It also ensures that we have recognition with councils within the NJC and can continue constructive  dialogue at local level as well as at NJC level
  • Having the NJC also means that we can keep a focus on equal pay and equality issues in a consistent way across local government and within councils. The break-up of the NJC would open up the potential for massive pay inequality and would make local government vulnerable to equal pay litigation – just as the last wave costing £2 billion dies down
  • However, the NJC has failed to deliver decent pay for our members – even during periods when the employers could have taken steps to help NJC workers catch up. Instead, pay fell below inflation in 8 of the last 16 years – leaving us in the sorry state we are in now
  • We want an NJC that provides the focus for positive and constructive bargaining – not just on pay, but on training, career development, equality issues and decent conditions. We have consistently said that we want the NJC to  negotiate on these issues, but the employers have made no move to help this happen
  • UNISON has led the very positive developments on the updating of the NJC Job Evaluation Scheme, production of role profile for social workers, school staff and public health workers and the LGPS. We want that to continue through the NJC
  • We will be issuing new bargaining advice shortly to branches and Regions on sick pay and car allowances as it seems clear that the employers will urge councils to cut them further at local level

What Happens Now With The Pay Offer?

Unison’s NJC Committee will be meeting on the 7 May in the morning to discuss the LGE’s final offer and agree its recommendation for the branch consultation which will start as soon as possible after 7 May. The Joint Trade Union Side will meet in the afternoon and will hopefully agree a joint way forward.

Branches and Regions will be asked to prepare to carry out branch ballots of all members covered by NJC pay and conditions to seek their views on the final offer.

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NEC Elections: Use Your Vote

The National Executive Council (NEC) is the body that runs UNISON and takes key decisions that affect you as a UNISON member.

Elections are now taking place to the NEC, and the people elected will be responsible for the way UNISON is run for the next two years.

UNISON members will be receiving a ballot pack at your home address, along with information about the candidates, and I urge you to use your vote to ensure that we get a good turnout, as democracy is very important to this union.

You must vote by the closing date of 24 May.

If you have not received your ballot pack by 29 April please call 0845 355 0845. Lines are open from 6am to midnight, Monday to Friday and 9am to 4pm on Saturday.

 Don’t forget to use your vote!

 Kensington & Chelsea Branch nominated candidate are:

 Sonya Howard Local Government women seat

 Phoebe Watkins Local Government women seat

 Glenn Kelly Local Government male seat

 Paul Homes Local Government seat (general)

 Helen Davies Greater London seat

 Jon Rogers Greater London seat

 Marsha Jane Thompson Greater London seat

 Gretta Holmes (Young members’ National seat)

 Hugo Pierre   Black Members national seat.

 April Ashley Black members’ seat

 Monique Hirst  Black members’ seat.

 Use Your Vote

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