16 September 2009

NJC Pay Claim for 2010/11

 

This circular outlines UNISON's proposed options for the NJC pay claim for 2010/11, as proposed by the UNISON NJC Committee on 9 September 2009.  Branches are asked to consult members on the proposed claim and submit responses to their Regional Head of Local Government by noon on Friday, 9 October 2009. 

 

 

The UNISON NJC Committee met on Wednesday, 9 September to discuss the contents of the NJC pay claim for 2010/11.  A detailed discussion was held about options for the claim, taking into account factors outlined later in this circular.  It is clear that a serious campaign is needed both at national and branch level in light of the continuing economic pressures and how they are being reflected within local government.

 

The UNISON NJC Committee agreed to a shortened consultation process in light of Conference recommendations to submit the claim well in advance of the pay anniversary date.  We recognise that this may cause difficulties for branches, but it is essential that we are in a position to submit the claim ASAP.  Council budgets are being fixed now and there is a real danger that if negotiations are allowed to drag on into next year, local government pay will increasingly become a highly political issue in the run up to the general election. 

 

As local authorities are presently in the process of finalising (pay) budgets for next year, it is vital that branches talk to employers and councillors at a local level about the claim and engage them in discussion over the hardship that many of our members are facing.  It is a time to invest in local economies by investing in the local government workforce.  Detailed proposals on the strategy to guide the pay campaign for 2010/11 were also considered by the NJC Committee and will be relayed to branches in the immediate future.  The importance of gaining widespread public support, through highlighting the undervalued nature of local government work, will be a central element.

 

The UNISON NJC Committee considered a wide range of economic indicators, pay comparisons with other public sector workers and the state of local government finances in 2010/11, summarised below.  It was agreed that the claim should be for a flat rate increase of £500 or 2.5% whichever is the greater over one year and kept separate to any improvements to the Green Book.  The decision to combine a flat rate and percentage increase was taken with the need for 'catch up' for our low paid members in mind.  It was also felt that putting figures on the claim has far greater meaning to our members than merely calling for a 'substantial increase'.

 

Economic factors and pay in the public sector

 

Below are some key factors for your consideration:

 

• Whilst the July 2009 RPI inflation rate is -1.4% the Bank of England forecasts that in 2010 GDP will rise to 0.6% and RPI to 1.8%.

 

• The bottom NJC scale point is now £6.30 pence. UNISON's target rate for the NMW is £7.45 pence. The London living wage is £7.60 pence. The bottom NJC rate is only 50 pence above the National Minimum Wage.

 

• There are large pay differentials with other public sector workers, especially those in the NHS as the table below indicates. These differences will increasingly be brought into sharp relief through the Total Place agenda.

 

NJC and NHS pay compared: £
NHS	NJC	NJC	NHS	NHS	% NHS Pay
Job Title	Job Title	Median Maximum Salary (IDS 2009 Survey)	37 ½ Hour Week  Maximum Pay (1.4.2009)	37 Hour Week Equivalent (1.4.09)	Exceeds NJC Pay
Domestic Support Worker	Cleaner	12,618	13,944	13,758	9.0%
Catering Assistant	Catering Assistant	12,849	13,944	13,758	7.1%
Residential Carer	Residential Care Assistant	16,495	18,157	17,915	8.6%
Home/Residential Carer Team Leader	Senior Care Worker	23,904	27,844	27,473	14.9%
Social Worker	Social Worker in Children and Families	31,439	34,410	33,951	8.0%
Social Worker Specialist	Senior Social Worker	34,592	40,853	40,308	16.5%
Nursery Nurse	Nursery Nurse	17,827	22,152	21,857	22.6%

 

• The local government workforce is experiencing low morale, a widespread fear of being made redundant and has recruitment problems in some sectors, especially in children's social work. Work intensification is also increasing with no compensation.

 

• Even though the economy has been in recession for over a year, pay settlements across both the public and private sectors have outstripped inflation. In addition, pay freezes have been largely limited to the private sector and do not constitute the majority (http://www.xperthr.co.uk/article/95716/pay-awards-fall-further-to-1percent.aspx).

 

• The capacity to pay is much stronger than the employers make out. According to local authorities themselves, instead of using £1,193 million of reserves to support their budgets, local authorities added £250 million to their reserves in 2008/9. In addition, the formula grant will not change in 2009/10.

 

Terms and Conditions

 

The UNISON NJC Committee also gave consideration to whether to include a terms and conditions element to the 2010/11 pay claim.  There are clearly outstanding claims from previous years for substantial improvements to conditions - especially when compared to other public sector workers and the NHS in particular.  The Committee felt that a claim for improved terms and conditions should be de-coupled from any claim for a pay increase - which will help to speed the negotiations if pay is considered in isolation.   

 

However, this does not mean that improvements to a range of conditions will not be taken forward.  We plan to consult branches following this pay consultation on a range of improvements to NJC conditions, summarized below.  Once agreed, we will push the employers to begin negotiated improvements to the Green Book on those elements most important to our members.

 

• One extra day of basic annual leave entitlement for all eligible staff  - or one days leave for all staff irrespective of service length
  
  
• Improvements to maternity and paternity  pay and parental leave provisions in line with those in the NHS

 

• Improvements to continuous service provisions - to allow service to accrue irrespective of breaks
  
  
• Increase to the sleeping in and night shift allowances
• Payment of Independent Safeguarding Authority (ISA) fees for all staff required to pay them

 

• Reduction in the working week

 

What a flat rate increase of £500 or 2.5% whichever is higher, will mean:

 

As the table below indicates, a £500 increase will give a 4.12% increase to those on the lowest scale point.  Those up to scale point 23 will receive increases above 2.5% on a sliding scale from 4.12%.  Those on and above scale point 23 will receive 2.5%.

 

01.04.09			£ Increase	% Increase
			£500
Scp4	£12,145		£12,645	4.12%
Scp5	£12,312		£12,812	4.06%
Scp6	£12,489		£12,989	4.00%
Scp7	£12,787		£13,287	3.91%
Scp8	£13,189		£13,689	3.79%
Scp 23	£20,198		£20,698	2.48%  (if a £500 flat rate were applied)

 

Conclusion

 

In conclusion, the UNISON NJC Committee agreed to consult branches on the basis of the following claim:

 

• A one year increase

 

• A £500 flat rate increase or 2.5% - whichever is the greater

 

• For improvements to conditions to be kept separate from the pay claim. The Committee agreed that our demands for improvements to terms and conditions should be in a separate claim to be made later in the year.

 

The UNISON NJC Committee will meet on 13 October 2009 to consider the branch consultation and detailed proposals for the 2010/11 pay claim to submit to the Employers.

 

Best wishes

Heather Wakefield

National Secretary

Local Government Service Group