1. IntroductionNo PCS member in the Ministry of Defence can be under any illusion that 2011 will see the reality of a Government determined to make its workforce pay for the mistakes of the casino bankers and others in the financial sector.
Attacks on the terms and conditions of all public sector workers will accelerate, despite the fact that public sector pay still lags behind the private sector. On pensions we will be expected to pay more and receive less, despite the fact that the average public sector pension is only about £7,000 per year (within the civil service this drops further to around £4,200 per year).
Add to the equation the fact that MOD staff will face a two year pay freeze from August 2011, while inflation continues at above 5% and you will see that the our union has a lot to concern us this year.
This is the first in a series of pay bulletins, designed to keep all members up to date on developments including our campaign to defend our terms and conditions.
Any comments, suggestions or proposals are always welcome to: bob@pcs.org.uk. Please indicate if you would prefer your messages not to be published.
2. MOD pay claim 2011
The group executive committee has been working with the PCS national pay unit to develop our 2011 pay claim. As our union rejects the proposed pay freeze, we agreed to submit a full claim based on the needs of our MOD members and also to reflect outstanding issues from the 2008 pay imposition.
The following is the claim, which is set in the context of a motion to be debated at the MOD 2011 group conference:
Pay motion 2011
The MOD claim is based upon a national pay claim which will shortly be submitted to the Cabinet Office. For many years the PCS has patiently sought national civil service pay reform; the different pay scales and systems across the civil service are patently unfair.
Civil servants have been the victims of wage restraint for some time now and many have experienced a pay freeze at the scale maximum and below inflation cost of living increases for years. Over the past three years civil servants have seen their pay increase at only half the rate of inflation. The Government’s own figures from the Office of National Statistics shows that average pay in the civil service is £22,850 compared to £24,970 in the private sector. Income Data Services conducted a study of comparable roles and found that at administrative officer level staff in the civil service were paid 21% less than in the private sector and at executive officer level staff were paid 18% less.
We believe that 2011 provides an opportunity to discuss in detail an improved pay system for MOD staff. A useful starting point is the MOD staff survey, which revealed that only a minority of staff were positive about pay and benefits. There is an opportunity to work towards a pay structure that identifies and eliminates any practices within the pay structures that unfairly discriminate on equality grounds.
MOD pay reform
There are several areas where the need for pay reform in the MOD pay system is desperate:
· The current MOD progression system is poor by civil service standards, with an above 5 years progression for some grades from minimum to maximum rates of pay. This should be addressed, and the time period should reflect reasonable assumptions as to how long it takes to become capable of fulfilling job roles;
· The MOD bonus pay system does not motivate. Transferring the money used for the bonus into consolidated pay is a much better use of that money and protects against discrimination;
· The MOD London pay arrangements are unsatisfactory and behind those of an enlightened employer;
· The MOD annual leave arrangement discriminate on the basis of working patterns;
· Urgent discussions are needed on pay equality informed by the information provided by the equality audit.
PCS 2011 pay claim
The PCS claim is:
· A fully consolidated and pensionable increase across the board to reflect the rate; of inflation (4.8%) for all including those on maximum pay rates;
· Reinstatement of the E1 and E2 maximum pay rates;
· An underpinning minimum of £1,200;
· Implement and improve progression;
· Improvements of starting pay on promotion;
· Removal of performance pay. PCS policy is against performance pay, and we believe that these monies should be allocated to basic pay;
· Agreement to eradicate all discrimination in pay matters;
· Review of London pay. PCS policy is that London pay rates should be £4,500 above the national pay rates – covering minima, maxima and intervening pay points;
· Review of annual leave. PCS policy is for 35 days annual leave for all on entry;
· 39 weeks full pay for maternity leave and adoption leave. 15 days paid maternity support leave;
· 35 hour (net) working week.
Bargaining agenda
This conference agrees that acceptance of this motion will signal an acceptance of the ownership of the claim by all MOD PCS members. To achieve the claim this conference agrees:
· To publish this claim to all PCS MOD members;
· To seek to agree this claim as a common claim with Prospect and FDA;
· (In the event of the above being achieved) To arrange joint membership meetings to discuss the claim;
· To consult with the PCS pay unit and legal representatives on the best way to achieve the pay objectives;
· To issue detailed reports following every MOD pay forum meeting. To consider using the details of the reports as leaflets for use at MOD sites;
· Develop a campaign strategy including possible industrial action to achieve our aims.
Your branch mandating meetings will provide you with an opportunity to discuss this motion and mandate your delegates accordingly.
3. Pay protection allowance
The issue of pay protection for our E1 and E2 members continues to cause significant concern, especially as the current pay protection allowance potentially comes to an end on 31 July 2011. This is a legacy of the imposed 2008 pay award.
In an attempt to extend the current allowance, we have written to the department in the hope of resolving this issue prior to the commencement of formal pay negotiations.
If we do not get a satisfactory response, the group executive committee will need to consider how best to progress the issue.
The text of the letter to DCP is as follows:
Pay band E2 and E1 pay protection allowance
Reference: D/DCP EF PMRR 03-01-03 dated 9 December 2008
The pay offer for 2008, which was imposed upon PCS members, included a reduction in the pay band maxima for pay bands E2 and E1.
Staff who were affected by this enforced reduction were given a “protected pay allowance” which would continue to have all the characteristics of the individual’s existing pay so would be reckonable for pension, overtime and promotion purposes.
Paragraph 15 of the offer letter proposed:
“For staff affected by the creation of the new generic E pay group maxima, during the offer period, we propose:
a. a job evaluation grading exercise jointly with the trade unions to review, by occupational group of those affected, and confirm the correct grading level and if the grading level is not confirmed, agree the way forward with the trade unions;
b. following the grading exercise, to assess, together with the trade unions whether “the protected pay allowance” could be converted into a protected market skills supplement (MSS) and which may lead to additional payments (depending on the market conditions);
c. and, 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”.
It is clear that we will not conclude the joint job evaluation and grading exercise, envisaged in a) above, in time to conclude discussions on b) and c) before 31 July 2011.
It is important that the remaining members impacted by the changes imposed in 2008 do not suffer a detriment as the pay offer period concludes. PCS therefore proposes that the protected pay allowance currently in payment be extended beyond 1 August 2011 for at least the length of any future pay offer and that all staff affected be notified as a matter of urgency.
4. Pay freeze implications
Our union will be meeting shortly with the department to ascertain how it intends to take forward the pay freeze for 2011 and 2012. The Treasury pay remit guidance has now been published, which makes clear that departments have a degree of flexibility in dealing with the minimum payment of £250 to staff earning less than the full time equivalent of £21,000 per year.
We will be seeking to ensure that maximum use is made of any pay recyclables to ensure that as many staff as possible receive some form of cash payment in 2011.
5. 2011 bonus payments
Members will be wondering what the position is regarding the payment of the MOD bonus this year. The official position is that management is consulting with Treasury officials on whether or not the pay freeze impacts on the payment of the bonus.
Our union will be arguing that we want the unconsolidated bonus pot to be paid out in such a way that the most members of staff will benefit. Currently some 97% of staff receive a bonus and we will want to ensure as many as possible continue to do so.
6. Equal pay issues
An equal pay audit was carried out in 2010 which shows that the shortening of pay scales carried out as part of the 2008 pay offer has significantly reduced previous discrimination in pay scales and progression.
However, the survey also shows that there are some areas where some statistically significant anomalies still exist. The department is carrying out further work to investigate these anomalies so that we can better understand the reasons behind them.
We will then look at this data with our union’s lawyers and the PCS national pay unit to investigate potential remedies.
We hope that this Bulletin is useful and would welcome any comments or feedback.
Chris Dando Group President
Rob Bowers Group Vice President
Bob Rollings Group Secretary
