Employers’ head, Jan Parkinson, has warned that attempts to opt out of the national pay bargaining system could be both costly and unlawful.
The threat of a break-up of the collective negotiations during this year’s pay talks by councils, including Birmingham, was made because some authorities wanted a pay freeze.
But in a letter to The MJ, the managing director of Local Government Employers said: ‘It is highly likely that any council which did take this [opt-out] risk would face litigation and serious industrial relations problems.’
Warning that while the collective agreement was not legally binding, any agreements incorporated into individual contracts were, she added: ‘We believe the best way forward is for all councils to work together through our national mechanisms.’
She was responding to claims in The MJ last week by lawyer Mark Greenburgh that councils could opt out of paying this year’s pay offer of 1-1.25% (see pages 3 and 18, The MJ, 17 September). His comments follow anger by Conservative councils about the offer, which they say should have been 0%.
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.
