Greg Hurst, Political Correspondent
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Gordon Brown issued a stark warning on pay to public sector unions yesterday, saying that some awards must be paid in stages and that his 2 per cent ceiling on rises would not be breached. His remarks, his toughest on pay since he became Prime Minister, came as prison officers’ leaders prepared to resume talks with the Government after their wildcat strike over a staged pay deal.
Mr Brown’s words were aimed at workers across the public sector and were intended to bury any lingering hopes among unions that he would soften the hawkish stance on pay settlements he adopted throughout as Chancellor in order to buy their support.
They follow a flurry of renegotiated pay settlements in which ministers have agreed to raise pay rates over the 2 per cent threshold for some of the lowest-paid health workers, civil servants and local government employees, although in each case the overall settlements remained within the limit.
Leaders of the Prison Officers’ Association would not rule out strikes as they prepared for renewed talks today with Jack Straw, the Justice Secretary, despite their voluntary no-strike agreement. A walkout from jails on Wednesday, abandoned after a court injunction forced them back to work, was over a decision to fund a 2.5 per cent pay deal in stages, cutting its value to 1.9 per cent.
Mr Brown said that he would continue to stage pay rises if necessary to preserve a stable economy and low inflation. “We have succeeded in tackling inflation and having a stable economy as a discipline in pay over these last ten years. That discipline will have to continue,” he said during a visit to a health clinic in London.
“The staging of the pay awards is an essential part of controlling inflation in the economy, keeping interest rates and mortgage rates low for homeowners and making sure that we have stability. And we do nothing, nothing that will put that at risk. It is an absolutely essential element of maintaining discipline in the economy so that people have jobs, people have higher standards of living and at the same time we have a stable economy that yields low interest rates.”
His stance drew an angry response from prison officers’ leaders, who demanded that their pay deals were renegotiated as ministers had done with health workers and firefighters. Colin Moses, chairman of the POA, told the BBC: “My members, in the ten years he is talking about, have had year-on-year cuts in their salaries. The last two years we have had a below-inflation pay award and he wants to ask why we can’t recruit the prison officers at the rate we should.”
The starting salary for a prison officer is £17,700. According to the Office for National Statistics a prison officer earns on average £508 a week, compared with £386 ten years ago. The average weekly wage of a nurse is £514, up from £292 in 1997. The pay review body said prison officers were paid up to 39 per cent more than counterparts in private jails and had better pension and holiday entitlements.
The Royal College of Nurses is to hold a special conference next month on whether to take industrial action on the decision to stage a 2.5 per cent pay deal in England.
The row comes as Mr Brown prepares to face union leaders next month at his first TUC as Labour leader, when the Public and Commercial Services union has tabled a resolution demanding coordinated action against freezes in public sector pay. The subject may dominate the conference despite last-minute improved offers in health and local government.
The Government improved its pay offer to the health service from a staged 2.5 per cent increase to an immediate increase of more than 2.5 per cent for the bottom four bands of employees, made in different stages.
Last week an offer of 2 per cent for local government workers was increased to 3.4 per cent for the lowest ranks of workers. Unison, the biggest health union, is balloting workers about the offer, with a result due on September 13, the last day of the conference. If the deal is rejected, there may be a ballot for industrial action.
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Way back to the 50s successive UK governments have quite deliberately under valued the essential services in this country. I believe they were then referred to as "vocations".
It has now reached the point at which it is more comfortable in Her Majesty's Prisons than it is in an NHS hospital.
Our medical care is invariably dispensed by people who through no fault of their own do not have a good command of the English language. It is grossly under funded and run by business managers with no medical knowledge and who are highly paid.
Our education system is dire with good teachers in short supply because they can no longer exert discipline in the classroom.
The social infrastructure of this country is collapsing and police spend more time doing paperwork than they do enforcing law and order. Not their fault. There are too many fat cats in government who get obscene salaries for implementing ridiculous schemes that take up police time and stretch their resources to breaking point.
Jeffers, Maidstone, UK
Will Mr Brown be delivering the same stark message to the private sector, CBI and Institute of Directors? What's good for the goose is good for the gander. What about forthcoming City pay rises and bonuses and their affect on inflation? Surely these should be postponed or at least curtailed given recent stock market turmoil. The government seems to have one set of rules for the public sector and a quite different one for the rest which is neither fair nor equal.
Michael Lewis, St Albans, UK
"The pay review body said prison officers were paid up to 39 per cent more than counterparts in private jails and had better pension and holiday entitlements."
Public sector workers don't realise just how lucky they are. Who in the private sector gets final salary pensions these days, and more to the point who in the public sector doesn't?
Brown has brought this upon himself by mass recruitment and reckless spending over the last 10 years and strenghtened the hand of the public sector and unions. As far as industrial relations are concerned we're back in the 1970's.
I:t's too soon to say that inflation's under control and Brown knows that if the economy crumbles, which looks more and more likely, the illusion of his frugal reputation goes up in smoke. Incidently, are we the only country in the world to have had a booming economy recently? Despite what Gordon would like us to think, I beg to differ.
The cracks are beginning to show.
James The Socialist, Leeds, UK
As a civil servant in one of the lowest paybands its enraging us that we the lowest paid ( £15000 ) are being the ones to suffer in order to meet Browns inflation target.........while MP's award themselves thousands of pounds.
In a case like this percentages are meaningless, managers are getting far more in actual money paid out in a rise, and the lowest paid are falling further behind.
Theres trouble brewing
Robert, Buckingham, England
shirley Bowen is absoluteley correct. COMEON MR Brown isn't it about time you controlled yourself, your ministers and MPs over annual increases, also Local Councils from following suit.? I suppose you think you will turn cote on your pensioners in 2008; I do hope they will have the sense to rise up against you.
Barbara Lockwood, Norwich, Norfolk
Although the public message of toughness and discipline have been achieved it will be interesting to see if the action matches the rhetoric.New Labour's track record is pretty dismal when it comes to matching the headline. What they say and what they do have often been total opposites with little or no regard to reality aided by a supine press interested only in the current scraps thrown to them by the latest labour spin master.
philip, Ipswich,
To say to some of the lowest paid members of society, who perform valuable services, that 'he staging of the pay awards is an essential part of controlling inflation in the economy' is an insult to public sector workers. Such pay restraint should apply to those earning six figure salaries who had pay rises of 37% during the last year and I suspect that the way in which these were paid maanged to avoid most if not all income tax.
S G Wainwright, Swansea,
I agree with you completely Shirley! Their pay rises show the arrogancy of MP's with regard to their own importance. They'd probably argue that it's because of all the out-of-hours work they do, but who doesn't these days! What a bunch of self deluded fools!
Nigel Purvis, Newtownards, County Down
Gordon needs to get real: the extra proportion of public sector pay over say over 2% is insignificant in the overall scheme of things; this is gesture politics and spin (what a surprise from the spin master!) if GB thinks that setting curbing public sector pay an example for others when he belives at the same time that the market should regulate these things - he is confused and not in the real world.
Adrian, London, UK
"The pay rules are tough and you must be disciplined, Brown tells the unions".
Not if you are an MP, they're not! It won't be long before they want to up their salaries again!
All they do for us is to feather their own nests, they are in politics for their own financial gain, nothing more!!
Gwilym Morgan-Jones, Holyhead, North Wales,
Stop increasing taxes above pay rises and slipping in the odd stealth tax Gordon and you might have a chance. Who in their right mind wants to sit year by year watching their income reduced in real terms whilst their outgoins are increasing at an alarming rate. We are told that our money buys more than ever before and so it does but take a look at what your buying, cheap shoddy imports from the far east. The reality of the pay rise situation is quite simple the country is broke and Brown dare not admit that he has blown the lot on mindless projects. We are heading for a sweat shop economy hence the impoting of cheap foreign labour.
Steve P, Leeds, England
Public sector workers have traditionally been paid low wages. This was compensated by having better working conditions. Now the government wants to take these away too.
An average Civil Servant has a starting salry of 17K at a junior manager grade but admin grades start at between 10 & 12K. I know some who live and work in central london who have to feed a family of five on as little as 13Kp/a. when the government is paying below the poverty line wages how can they expect private companies to?
E. Mann, Warwick, U.K
put this government back in with a big majority at your peril
they will squeeze workers dry with tax rises and other means
its ok for them to have big pay rises but not the working class
everyone should stick together and make sure the government work for us and not themselves.
RICHARD MAINPRIZE, BRIDLINGTON, ENGLAND
The measure of inflation targeted by the Bank of England does not reflect the real rise in the cost of living. The Retail Prices Index is a more realistic representation of what minimum pay awards should be, unless you wish to impose a real pay cut on your employees. Having recently fallen to 3.8% from 4.4%, the second figure being very close to the average for 2007, there are various reasons why the fall will be reversed. With the oil price unlikely to weaken significantly and food prices to add to inflationary pressure, any pay settlement for less than 4.4% is a cut in pay from present levels. If you are already behind comparable pay for comparable work, why on earth would you entertain a pay award of any less? Having been told we have enjoyed an "economic miracle" and that the economy is strong, arguments that pay rises should be limited to 2.5% are very difficult to justify.
Hamish, Glasgow,
1/2 million Eastern Europeans entered the UK last year looking for work, any work, and the majority are more than willing to accept the minimum wage, or less. How can your average working man with a family compete with that? How could he reasonably demand a pay rise with so much competition at hand? Brown wants to flood the job market with cheap labour - good for the Unions for making a stand.
Jim, Manchester,
Funny how the low increases and staged awards frequently apply to the lower paid but Brown and the gang that surround him get massive increases in salary and mind boggling expenses, seemingly without having to produce much proof of such expenditure. It's yet another example of hypocricy; "don't do as I do, do as I say".
paul turfery, Cork, Ireland
As ever, this government's benchmark for inflation, the Consumer Price Index ( CPI ), misrepresents totally the rising cost of living in the country. Brown wants us to believe that annual inflation is running at around the 'official' 2% level but the reality is that spending power decreases by around 5% each year.
Remember, there are lies, damned lies and Labour statistics.
Rick, London, England
Pay awards below inflation? Not for MP's they're not eh, Gordon. And they awarded themselves £10,000 each this year to run their websites. What a lark, no wonder there's trouble brewing. Important key workers will naturally be feeling resentful, what does the 'government' expect.
shirley bowen, Blackpool, UK