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Local government employers are actively considering placing terms and conditions on the table for the first time, as part of the 2011 pay negotiations. The plans follow an increasing number of councils wanting to reform part two of the Green Book, which sets out sick pay, annual leave, car allowances and hours. Many councils are already unilaterally revising such terms and conditions downwards to reduce payroll costs and avoid redundancies in the way many private companies have done during the recession. Some are even considering dismissing and re-engaging the workforce on different terms as a way round part two of the Green Book. The proposals under consideration by Local Government Employers emerged as, this week, the three main town hall unions – Unison, Unite and GMB – submitted a pay claim for 2011 of ‘at least' £250 for every council worker. According to informed sources, LGE believes the time has come to renegotiate the Green Book on a national basis with the unions. One source told The MJ: ‘The employers have been between a rock and a hard place for a few years now, manifested by the unions consistently arguing that pay and terms and conditions in local government are low in comparison with other parts of the public sector, and councils arguing they're too high. ‘National collective bargaining has its supporters and detractors but, overall, the sector generally accepts that where progress can be made, it avoids duplication of effort, cost and strife at local level.' The source added: ‘The employers' view nationally is that the sector needs to see a clear direction of travel whereby national negotiations produce outcomes that reduce and control costs in the light of the upcoming CSR settlement, if significant numbers of dismissals and re-engagements are to be avoided. Councils need to be more productive with fewer resources.' In return, employers may consider modest pay rises if revision of the Green Book leads to lower payroll costs overall. Sir Steve Bullock, chair of the Local Government Employers, told The MJ: ‘The majority of councils made clear they did not want to make a pay offer in 2010. For 2011, the sector needs us to do more. Our discussions with the unions have to be focused on more than just levels of pay and, if we can reach an agreement that reduces costs and avoids councils having to take unilateral action to dismiss and re-engage, it will have been worth the effort.' Support for changes to terms and conditions also came from Ed Sweeney of the conciliation service Acas, who told The FT newspaper this week that shorter working hours in the public sector could help reduce some of the projected 600,000 job losses. A survey by Eversheds this week found that 91% of council respondents believed job losses were their greatest challenge, with 61% planning changes to employment terms and conditions, and 67% to their employment practices. GMB national secretary, Brian Strutton, said: ‘With pay rates now only 37p above the national minimum wage, it really is becoming difficult for council workers to make ends meet, and tens of thousands of them are on benefits. ‘For all these reasons, our members need a reasonable pay rise in 2011.'

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WHITEHALL

Employers 'planning to tear up' the Green Book

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