Thursday 11 December 2008

++ STOP PRESS ++ MoD Pay Update ++


GEC view on pay offer

As you will be aware MoD has today published its pay offer to staff. The offer and an on line calculator is available on the MoD intranet and will also be available shortly via this part of the PCSwebsite: http://www.pcs.org.uk/en/ministry_of_defence_group/ministry_of_defence_group.cfm

Details of the offer

PCS members will note that the offer in many ways represents progress on key pay bargaining priorities for our union and members including:

Shorter pay scales – by 2010, there will be 5 scale points from min to max at E2 and E1; 6 at D – B2 and 7 at B1.
An end to overlapping pay scales between grades.
Significant growth of the pay band minima at E2 – D, with many staff at the bottom receiving an award of over 20%.
Additional pay progression, in 2009 and 2010, for staff with respectively over 8 years and 5 years service in their pay band, worth an additional 3%-6%.
Above inflation awards for many members in year 2 and 3 of the award in particular.
An end to higher starting pay (HSP) and functional recruitment and retention allowances (RRA), to be replaced by a market skills supplement (MSS) agreed with the trade unions.
The creation of a London pay scale and an uplift in London weighting.

There is no doubt that these concessions have been granted by MoD directly as a result of the action, including our legal action, taken by PCS members in MoD over the last few years and also as a result of the active support of members for our long running pay campaign.

However the offer also falls short of our aspirations in a number of areas, including:

The offer does not deliver an above inflation award for all members for each of the three years.
The offer contains proposals to reduce the pay band maxima at E2 and E1 and to introduce a ‘protected pay allowance’ for staff who find themselves at or above the new pay band maxima. We are not in agreement about the operation of the allowance at present.

The department has refused to commit to guaranteeing that progression through the new pay scales is automatic and have stated that progression can only be guaranteed until 2010.
Staff at their pay band maxima (or those who reach it during the period of the offer) will not benefit from the additional 3% progression payments.

The proposal to remove London pay from staff working overseas is totally unacceptable.
We believe that the progression arrangements are still too long in some cases

What happens next?

The department have informed us they intend to pay the first element of the offer (including back pay to August 2008) in February pay packets. Our union is aware that many members will welcome this initial payment. However this does not mean that the offer is being imposed on us or that the pay negotiations are complete.

In light of the PCS national campaign on pay – and following the agreement reached with the Cabinet Office and Treasury - MoD has agreed to continue negotiations with PCS on pay and on 4 key issues specifically. These are:

Further negotiations on MoD proposals for the E2 and E1 max (members will note that these proposals are not due to come into force until 1st May 2009) and therefore are not impacted by the February payment when staff migrate to the new 3% pay scale.
Talks on the 2009 Treasury remit guidance and possible benefits to PCS members.
Talks around the national agreement that PCS has recently secured with the Cabinet Office and Treasury on pay. Specifically, there will be talks to examine if money that MoD has saved through efficiency savings can be used to further improve the pay of PCS members in MoD.
There will be dialogue to assess if MoD and PCS can reach agreement on the equal pay and age discrimination cases that we have lodged at employment tribunal.

A timeline will be published for these talks shortly. If and when we reach an agreement PCS members will be balloted on a final offer from the department. We expect that an updated offer letter will be produced by MoD in due course if and when agreement is reached.

Yours sincerely

Paul Barnsley, group secretary
Chris Dando, group president
KC Jones, vice president

Tuesday 2 December 2008

Agreement reached on PCS National Industrial action.

Message to members

PCS reaches agreement with government over pay

We have reached a national agreement with the government over pay. More money will now be released for pay bargaining in individual departments and related public bodies.

The government has also said that there is no 2% pay cap on staff pay increases.

We have been campaigning against the unfair pay limit on public sector pay increases and we have demanded fair pay for PCS members.

Many members have been in dispute with their management over the 2008 pay round.

In September members voted in a national ballot for a programme of industrial action. Strike action was planned for 10 November. We were then told by Sir Gus O’Donnell, head of the civil service, that talks could take place that would address our concerns in this national pay dispute.
Those talks have taken place and the agreement reached. A letter sent by Sir Gus O’Donnell to our general secretary which sets out the terms of the agreement is available on this website and from your local PCS rep.

More money to be made available for pay

The letter says that "efficiency savings" can be put to good use in improving pay. This policy change, involving cutting the use of consultants, for example, should release many millions of pounds. Management have not been able to use this money for pay previously. The letter also says that there is no 2% pay cap on staff pay increases so there is no necessity for people on the maximum of their pay scale to have zero increases.

Campaign continues

The agreement does not mean the end of our campaign for fair pay. It is now necessary for departmental PCS pay bargainers to go to management and talk to them about using this money for staff pay. Where there have been disputes, management must come back to the negotiating table. The agreement must be tested. There will not now be national industrial action organised under the authority of the September ballot. But our national campaign will not end until we are sure that members’ pay has been improved. If necessary, we will step the campaign up again. Members standing together, being prepared to take action, have opened the door to more money. Now we must make sure the agreement produces better pay for members.

Our other demands – on pay progression, regional pay, cutting the number of bargaining units, performance pay and equal pay – will be taken up in a process of discussions in the coming months.

Joint action with other unions

We have been working with other public sector unions to campaign against the pay cap. We have said that joint action is the best way to oppose an unfair government policy. But, in the absence of that joint action, and at a time of economic recession, the agreement we have reached is an important one. This is the first time in many years that we have achieved a national agreement on pay issues in the civil service and related areas.

Breakthrough

Since 2004 we have protected pensions, won agreements on avoiding compulsory redundancies and on privatisation, and stopped attacks on sick pay. Members should feel proud that we have now made this breakthrough on pay.

Mark Serwotka, General Secretary

Janice Godrich, President

Please see the text below on the PCS website.

http://www.pcs.org.uk/en/campaigns/national-pay-campaign/pay-campaign--members-briefing/ )