The employers’ negotiator has defended their handling of the tortuous pay talks with council workers.
Writing exclusively in The MJ, (see page 6) Sir Steve Bullock, chairman of the LGA HR panel, expressed concern at the split that had developed between councils over the 1% pay deal offered to unions.
It follows Birmingham City Council’s call for the offer to be withdrawn and the threat of withdrawal from national bargaining.
Sir Steve said: ‘It is disappointing that, as a result of this offer, some councils are now contemplating withdrawing from national pay bargaining. It is not clear what benefits this would bring.
‘In fact, it may well add to a council’s costs and cause pay inflation, with councils leap-frogging each others’ deals in order to recruit and retain employees.’
Just how deep the divisions were is also revealed. A minority wanted a pay freeze while the rest were split between making a very low offer or a slightly more generous one, if that led to a quick settlement.
He warned more consultation would not have produced a consensus, given the employers’ remit was to obtain pay agreements that were fair, realistic and affordable. Birmingham’s union leaders reacted angrily to the council’s demands.
Roger McKenzie, Unison regional secretary, said: ‘This is a scandalous attempt by the Tory-controlled Birmingham City Council to break away from a national pay deal.
‘We are about to ask our members to accept a 1% pay rise, with 1.25% for the lowest paid. The response by the largest council in the region hit hardest by the recession is to expect workers to survive on even less.’
l In Scotland, 6,500 staff at Dumfries and Galloway Council have voted by more than 90% in favour of accepting a deal to resolve historic pay inequalities.
Two ways to improve local authority finances
The NAO has concluded insufficient action has been taken to address weaknesses in council finances. Teams from TLT LLP consider what councils should do next.
