MoD Pay - Ongoing Discussions on Pay and E1/E2 Issues
PCS negotiators will meet the MoD pay team on Friday 23rd January 2009 for further discussions on the employer’s pay proposals for 2008-2011. We intend to start discussions on the following issues:
· Pay proposals for E1 and E2 max and the pay protection allowance
· Retained grades and market skills supplements (MSS)
· Agreed process for ongoing pay discussions
· Additional progression and the application of the payments
· Equal pay and age discrimination issues
· MoD admin costs budget
· 2009 Treasury Remit guidance (if possible)
A full report back on this meeting will be issued to PCS members shortly.
MoD proposals for the E1 and E2 Max
PCS totally opposes the current MoD proposals for staff in the E1 and E2 pay bands. We believe it would be completely unjust and unfair to penalise the lowest paid staff in the department by cutting their pay band maxima. It would be equally wrong to force thousands of hard working staff to accept non consolidated pay awards and also miss out on additional progression payments based on length of service.
Many PCS members have contacted us to make clear their anger at the proposals from the employer, and consultation with branches has revealed that this element specifically of the MoD proposal is totally unsatisfactory and that we cannot recommend acceptance of the award unless this issue is satisfactorily resolved.
Pay protection allowance
A number of members have contacted our union about the potential loss of pension entitlements if these proposals are enacted. In fact, the proposed pay protection allowance is fully pensionable. The allowance would top up the difference between an existing salary and the new max. Members would not to lose a penny in current pay or in current final salary pension payments.
Members are also asked to note that the max at both E1 and E2 does increase over the 3 years of the proposed deal and that this increase is fully consolidated and pensionable. We would expect the same arrangements to apply for future increases to the maxima at E1 and E2.
Finally we are fully aware that MoD has failed to provide a guarantee that the allowance will be paid for life (or at least until the max gets back to where it is now). We are also seeking further discussions on this issue and have made it clear that this issue must be must be resolved.
Legal considerations
PCS is already in consultation with our lawyers about the legality of the department’s proposals for staff at the E1 and E2 Max. As these proposals are not due to come into force until May 2009 we still have time to find an acceptable way forward with the department on this issue. However, should this not be possible we will set out that advice to members and publish guidance that would be applicable to all PCS members at pay band’s E1 and E2. Please check the MoD section of the PCS website (www.pcs.org.uk/mod) regularly for further updates on pay.
Current position and PCS bargaining agenda
It is worth restating that the proposals for the reduced maxima at pay band’s E1 and E2 have come from MoD and that PCS is fully opposed to this element of the pay award. We are dismayed that MoD would wish to attack the pay of some of the lowest paid staff in MoD.
Our union has therefore not accepted the MoD pay offer and we have agreed that further discussions between PCS and the department should take place on this and other key pay issues. When we believe we have exhausted the process we will ballot our members on the offer from the employer.
The forthcoming talks will focus on the recent national agreement on pay between PCS and the Cabinet Office/Treasury to see if this can result in further improvements to the offer. PCS will make clear that we must address the unacceptable proposals contained in the offer to reduce the E2 and E1 maxima and to pay impacted staff a small non-consolidated award.
The current proposals mean that some of the lowest paid staff will benefit less from this offer than other, comparatively better paid staff. This is unacceptable and our union will be doing all that we can to resolve this.
A further update on pay for PCS members will be issued shortly.
