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Two-tier pay rises cannot continue Another day, another slating for chief executive pay. This week, it was the turn of the Taxpayers' Alliance – again. But, so much has been said in the pages of The MJ about senior staff's pay and packages, it hardly needs to be repeated. But it was not just the chief executives who were hitting the headlines for their pay this week. Instead, it was staff remuneration, with the latest 0.5% pay offer on the table from the employers' side. As yet, we have not seen a figure from the unions, but suffice to say, they find the offer ‘deplorable'. Come pay bargaining time, we all have the greatest of sympathy for frontline workers – the lower-paid army of staff who make local government work. But, with unions taking on employers over the 2008/09 settlement – only finalising the deal last month – and the shift in economic fortunes, support is a little thinner on the ground this year. With the 2009/10 offer at 0.5%, cash-strapped councils are already offering a rate which is above the current zero per cent interest rate. With local people facing pay freezes, cuts or even redundancies, any more would be a public relations nightmare. And for a sector intent on nursing its communities through the recession, a significant pay hike would be downright insensitive. That is, until you read our Whitehall focus, in which the general secretary of the Civil Service union, the FDA, has written for us. Jonathan Baume complains about the decision to cut a Civil Service pay rise – negotiated under a three-year deal – from 2.1% to 1.5%, describing it as a ‘slap in the face' for his members. From where the local government unions are sitting, it is not so much a slap as a ray of hope for their negotiations. True, they are probably lamenting the fact that they declined the chance to go for a three-year deal last time – hindsight is a wonderful thing. Is it fair that half the public sector should face what is a rather generous rise in the current climate, while the other half is expected to settle for far less. The pay rises are reinforcing a two-tier approach to public services – with local government at the bottom. Heather Jameson, Deputy Editor, The MJ

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WHITEHALL

Two-tier pay rises cannot continue

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