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Chief executives' union ALACE has ‘reluctantly' agreed to settle for a pay freeze for its members, after employers refused to go to arbitration. ALACE called for the 0% pay offer to be taken to ACAS last month (see page 1, The MJ, 10 September), or to be increased in line with other local government staff. But last week, the Local Government Employers breached their own constitution by deciding ‘not to participate in arbitration'. In a letter to the honorary secretary of ALACE, Waverley BC's chief executive Mary Orton, LGE assistant secretary Phil White said the employers were ‘surprised and disappointed' by the call for arbitration. He wrote: ‘It is not about affordability in itself, but the belief that an increase for chief executives would send the wrong message to local government's low paid workers… and council tax payers.' Ms Orton told The MJ she was ‘disappointed' with what she described as the ‘populist political stance' the employers had taken, but ALACE had decided not to pursue its claim. ‘We are not going to break off relations with the employers over this,' she added. Speaking to The MJ, Mr White accepted it was a breach of ALACE's own constitution, but added: ‘We have to weigh up our constitutional responsibilities, with our wider responsibilities.' He also claimed the decision to freeze chief executive pay was in line with a ‘cross-party view emerging from Whitehall', following announcements on senior public services from across the political divide. This week, chancellor Alistair Darling announced a pay freeze for all senior public service workers, and no more than 1% for ‘middle-ranking public servants' in a bid to plug the growing national debt. His Tory counterpart, George Osborne, told the Conservative Party conference in Manchester that he, too, planned to freeze public sector pay for 12 months, for anyone earning over £18,000. He claimed the freeze would be equivalent to saving 100,000 frontline jobs. Cambridgeshire CC announced a pay freeze for all its managers – from the chief executive downwards, while all frontline staff would get the nationally agreed 1%. The council estimated it would be £113m worse off in five years' time than it was now, as the Government strove to curb public spending. Cabinet member for resources, John Reynolds, said: ‘Our managers and staff do a very good job, and they understand this decision not to offer a cost-of-living increase is about helping to maintain the vital services they deliver.'

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WHITEHALL

Employers block bid to rethink chiefs' pay

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