Friday, 17 April 2009

Pay Update No 12: 60 Second digest – The spin and the truth

At a time when the media is full of stories of spin, it seems the Ministry of Defence senior management do not wish to be left out.

The recently issued 12 page ‘60 second digest’ (which takes about 10 minutes to read!) is full of misleading information.

Our union is happy to let all staff know the truth:

MoD management Claim:
The Facts
Page 2 “Key aim to move all staff from long pay spine to short pay scales applicable to all"
Since 1998 the department had been busily lengthening pay scales to the extent that min to max for E grades took over 40 years. Over the same period our union has been bargaining for shorter pay scales and only the hundreds of equal and age pay claims PCS has lodged has brought about the proposed shorter pay scales. Campaigning and action by PCS members has forced MoD to shorten pay scales to avoid future liability. MoD has repeatedly told PCS that it will not guarantee progression after 2010.

Page 3 “Those on pay scale minima will get even more since minima significantly increased”
Minima’s have increased, though not very significantly. An E2 at the bottom of the new proposed spine will earn £13,881. This equates to £6.36 per hour. This is well below the living wage figure for 2009 (which is £7.45). The PCS pay claim was for a minimum for all of £8.00 per hour. .

Page 3 “Prospect and FDA have voted overwhelmingly in favour of the offer”
What other unions do is a matter for their members. However it is worth remembering that PCS represents more members than all of the other MoD unions (industrial and non-industrial) put together. We represent almost all of the staff in the E1 and E2 pay band who are facing a disgraceful attack on their pay and pensions.

Page 4 “Before 2006 it could have taken 36 years to reach Band E maxima
Pay scales reduce to 6 scale points for both.”
Before 2006 – and before we lodged our equal pay claims - MoD was quite happy to have 36 year pay scales. Now MoD wants to shorten the scales by cutting of the top of the scales and attacking our pay.

Page 4 “New pay scale maxima from 1 May 2009 to better reflect the market”
This claim refers to Cabinet Office pay club data that MoD tabled at the end of 2008. However, MoD has selectively used this data to claim that E1 and E2 staff in their words are “overpaid”. For example at the top of E2 the pay of MoD staff is comparable to thousands of other civil servants in HMRC, DEFRA, Highways Agency, Treasury Solicitors, DIUS, British Council DSA and many others.

Page 4 “Staff currently being paid at or above new maxima will have their pay protected”
This is also untrue. The MOD has consistently refused to give our union any guarantees on pay protection after 2010. In addition we believe that all staff in E1 and E2 will suffer a detriment on the day that MoD impose their proposals.

Page 5 “All Band E staff will receive an increase in take home pay during the life of this Award.”
True, but for some members this will literally be a few hundred pounds of non-consolidated pay over the period. As stated above there are no guarantees beyond 2010 that pay protection will continue and it also has pension implications.

Page 6 “There is no detriment for Band E staff”
If you are above the current max as an E grade, you will not receive a 3% consolidated, pensionable rise like all other members of staff. You will also miss out on the length of service payments that MoD has proposed. This is clearly a detriment!

Page 10 “Higher pay awards than will not be permitted under 2009 Treasury Guidance.”
How does the MOD know this? They refused to wait till the 2009 treasury remit guidance was published! The Treasury remit guidance has now been published and includes, as expected, provision to use savings from efficiencies to improve the pay of staff. This was part of the national pay agreement between PCS and the Cabinet office in November last year. We wanted to test the Guidance to see if we could improve the pay of all staff in MoD. The Department, negotiating in bad faith, has potentially cost every member of staff in MoD money through its tactics and behaviour.

Page 11 “Why are you reducing the band E maxima?
Benchmarking data indicated that MOD pay rates were out of kilter with market and other Government Departments.”
See above regarding MOD pay against similar outside markets. As regards other government departments, we are very much on a par with most other government departments.

We suspect the truth is that MoD has agreed with the Treasury to impose reduced pay as part of an attempt to define national pay rates for civil servants without negotiation or agreement with PCS.

Page 12 “Has MOD broken the Pay Bargaining Agreement? No. MOD and the NITU’s agreed a set of bargaining principles in 2008. The Department held a large number of pay bargaining meetings with the TUs in 2008 and worked hard with the TUs to develop a set of pay proposals to meet TU demands as well as MOD business requirements and affordability. As a result of those negotiations, MOD agreed to significantly increase the level at which the pay band E maxima were set above those originally proposed by the Department.”
MoD has negotiated in bad faith. The Department’s own pay offer states “For staff affected by the creation of the new generic E pay group maxima, during the offer period, we propose further talks with the trade unions to find an agreed way forward on pay protection. A project plan will be devised under the aegis of the Pay Forum and agreed with the Trade Unions by March 2009.” MoD has failed to keep that promise.

We are raising our concerns with the Treasury and Cabinet Office. We have also invited to the MoD Personnel Director and Ministers to intervene and stop this attack on our pay.


Please VOTE NO in the pay ballot.

Yours sincerely

Paul Barnsley Chris Dando KC Jones
Group Secretary President Vice President