08 July 2009
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Chief executives lead calls for pay restraint


Chris Smith and Heather Jameson

The pay claim, put in last September, was no longer deemed appropriate in the current financial climate. Instead, ALACE is looking to take whatever is offered to frontline workers – and estimate a pay deal of between zero and 1%.

In a bid to force the had of the other unions and the employers on pay deadlocks, ALACE wants to resolve their pay deal first

So far unions have rejected the offer of a 0.5% increase but have yet to reveal what they are prepared to accept. A source close to the talks said there had been no movement since the offer was rejected.

New honorary secretary of ALACE, Mary Orton told The MJ the 3% pay claim was ‘an opening gambit which was put in last September,’ but added: ‘Things have changed a lot since then.’

The chief executive of Waverley BC said: ‘There was some suggestion from the employers’ side that we should not get a pay rise, but we feel we are as deserving as other members of staff, so we should get the same.’

Chief executives were uncomfortable with the pay claim and several have agreed to voluntary pay freezes. At least two – who do not wish to be named – have taken a pay cut in a bid to make ends meet at their councils.

Earlier this week, chief executive of the Audit Commission, Steve Bundred, caused a political storm by warning a zero percent deal was vital if the Government was to tackle the Government’s massive debt.

‘Nothing should be off limits,’ Mr Bundred said. ‘At a time when inflation is likely to be between 2% and 3% [CPI], a pain-free way of cutting public spending would be to freeze public-sector pay, or at least impose severe pay restraint.
‘This is especially true if real wages in the private sector are still falling.’

General secretary of Unison, Dave Prentis, said freezing public sector pay was not the answer. He claimed the recession was caused by ‘bankers and speculators’.

‘Low paid public sector workers, who are helping communities deal with the fall-out, are being asked to pay the price. At the same time city bonuses are making a come-back with figures that most people can't even dream of earning in a whole lifetime.’

A spokesman for chief executives’ society SOLACE said: ‘We are confident that our members are as sensitive to the biting effects of the recession as the chief of the Audit Commission.’



Your comments

first attack low paid workers pensions then attack their pay. it seems to me that when these workers retire, probably at the age of 95 if some people have their way, they will hve to survive on social security, who pays then?

James, Added: Friday, 10 July 2009 09:08 AM

Your story "Chief Executives lead calls for pay restraint" is laughable in its own right and insulting to the main NJC negotiators. Just for the record, Trade Union and Employer negotiators worked out a sensible proposal back in May that could have formed the basis of an affordable pay offer for 2009. Sadly the dysfunctional LGA has been unable to make up its mind what to do and the NJC Trade Unions meet next week to decide next steps. I'm sorry if these facts cut across your story.

Brian Strutton, GMB National Secretary, NJC Joint Secretary, Added: Thursday, 9 July 2009 05:21 PM



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