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UNISON Local Government NJC Pay 2014-2015 NJC Pay 2014 – 2015 Have your say on local government pay UNISON Local Government Service Group.

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Presentation on theme: "UNISON Local Government NJC Pay 2014-2015 NJC Pay 2014 – 2015 Have your say on local government pay UNISON Local Government Service Group."— Presentation transcript:

1 UNISON Local Government NJC Pay NJC Pay 2014 – 2015 Have your say on local government pay UNISON Local Government Service Group

2 UNISON Local Government NJC Pay NJC Pay Claim: Context  NJC – the poor relation of the public sector  Meagre1% NJC pay rise after 3 year pay freeze  Widespread redundancies and cuts to terms and conditions  Local Government facing unprecedented funding cuts – 40% by 2015  High profile pay campaign linked to possible industrial action as part of wider strategy

3 UNISON Local Government NJC Pay UNISON Options for the Claim Two alternatives agreed by UNISON NJC Committee for consultation: Option 1 – Living Wage (LW) hourly rate to be minimum pay rate, with an equivalent percentage increase on all other spinal column points OR Option 2 – Flat rate increase of £1/hour on all pay points which achieves the current Living Wage as bottom NJC spinal column point and a flat rate increase of £1/hour on all other spinal column points

4 UNISON Local Government NJC Pay An NJC claim based on the LW Both options are designed to provide:  Sector wide – not local - bargaining to achieve LW  Maintenance of equal pay proofed single status structures  Prevention of new rash of equal pay litigation  Clear focus for high profile campaign

5 UNISON Local Government NJC Pay What does Option 1 mean? A claim based on the Living Wage:  £1/hour on scp 5 = £7.45 – the outside London LW rate  Equivalent percentage increase for scp 6-49  Same increase throughout the pay spine  Addresses poverty pay at bottom and relative low pay throughout structure

6 UNISON Local Government NJC Pay What does Option 2 mean? A claim based on flat rate increase of £1 an hour  £1/hour on new bottom NJC scp 5 of £6.45 brings it to current LW level of £7.45 outside London  Simple and also leaves grading structures intact  But increases existing compression in middle and higher pay grades unless extension to spine

7 UNISON Local Government NJC Pay Options Compared

8 UNISON Local Government NJC Pay What is the Living Wage?  A wage sufficient to enable workers to live decently and raise their families without hardship  A benchmark figure currently set at £7.45/hour outside London and £8.55/hour in London  Below ‘official’ definition of poverty pay of £7.47/hour – not a fortune  Paid on a voluntary basis  Updated each November  LW employer expected to implement new rate within 6 months of announcement

9 UNISON Local Government NJC Pay Where are we at with the Living Wage?  Small – but – increasing number of councils have adopted LW  Implementation methods vary  Growing number of councils making pay awards above NJC and including LW  High proportion councils now considering LW  Talk of LW common across LG – important UNISON not lag behind  Aim is to achieve LW through collective bargaining and maintain single status pay structures

10 UNISON Local Government NJC Pay Why a LW claim this year: The Political Case  Growing public awareness and support for LW  TUC considering LW in Local Government campaign  Think tank research continues to spotlight LW – Compass/IPPR Living Wage Commission  High level political support pledged from Labour and supportive noises from Coalition

11 UNISON Local Government NJC Pay Why a LW claim this year: The Economic Case Clear macro-economic case for LW:  IFS study - benefits for the Treasury  Queen Mary College research - multiple benefits for employers Economic benefits for local community because high proportions of LG workers live in areas they work and spend locally:  APSE and CLES research on LW & higher local spending – every £1 spent generates further 64p

12 UNISON Local Government NJC Pay Why a LW claim this year: The Moral Case  Local government – the only sector with large numbers of employees below LW  LW is below official poverty level of £7.47/hour  Partnership working and transfer of public health staff puts spotlight on low pay in local government  LW as means to tackle rising inequality falling income and impact of poverty  LW as positive impact on social cohesion, health and future wellbeing

13 UNISON Local Government NJC Pay Why a LW claim this year: The Recruitment & Organising Case  LW campaign provides clear focus and morale boost for LG employees, members and activists  Branches, activists and paid officials will need to engage very directly with members and non members to explain campaign and commitment to ending poverty pay in LG  Recruitment potential of high profile LW campaign is clear  Option 2 has major recruitment potential

14 UNISON Local Government NJC Pay Is a LW claim realistic?  Councils and employers can’t have it both ways – local implementation of LW but no – or low – NJC increases  Many councils want to address pay of middle and higher earners  Councils are leaving – or threatening to leave – NJC to do better deals with staff  LW will boost morale and productivity

15 UNISON Local Government NJC Pay Is a LW claim affordable?  Local government pay bill has fallen for last 3 years in real terms and is now 23.09% lower  In the last year the gross pay bill fell by 10%  Many councils have significant reserves  School funding has been protected - although not inflation proofed  The LGE has mooted a ‘clean up’ of the NJC pay spine to get money into the system  LG section is modelling implementation options

16 UNISON Local Government NJC Pay Your pay – your say  Branches are asked to consult as widely as possible – return results to regions by 4 October  The UNISON NJC Committee will consider results on 11 October  GMB and UNITE are ending their consultations to a similar timetable  The NJC Trade Union Side will agree contents of the claim on 15 October  It’s time to end poverty pay in local government!

17 UNISON Local Government NJC Pay


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