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| Public sector pay reform planned | |
| (30 minutes later) | |
| Public sector workers could have their salaries set for three years rather than 12 months under plans being put forward by Alistair Darling. | Public sector workers could have their salaries set for three years rather than 12 months under plans being put forward by Alistair Darling. |
| The chancellor is expected to argue the proposals will help departments plan budgets, as well as control inflation. | The chancellor is expected to argue the proposals will help departments plan budgets, as well as control inflation. |
| Ministers are facing mounting pressure over a decision to limit public sector pay rises to 2%, with unions warning of a "collision" with workers. | Ministers are facing mounting pressure over a decision to limit public sector pay rises to 2%, with unions warning of a "collision" with workers. |
| The TUC said any three-year deals would depend on the terms offered. | |
| The government has said such limits are necessary to tackle higher inflation. | The government has said such limits are necessary to tackle higher inflation. |
| 'Guaranteed earnings' | 'Guaranteed earnings' |
| The budgets of Whitehall departments are set for three-year periods and the government now wants to see public sector pay awards for nurses, the police and other public servants to be fixed in the same way. | The budgets of Whitehall departments are set for three-year periods and the government now wants to see public sector pay awards for nurses, the police and other public servants to be fixed in the same way. |
| Mr Darling is expected to argue that the new longer-term agreement will guarantee earnings growth for 5.5 million workers as well as help ward off inflation. | Mr Darling is expected to argue that the new longer-term agreement will guarantee earnings growth for 5.5 million workers as well as help ward off inflation. |
| If we were to agree to a three-year pay deal that would really need to be a very decent, fair award Karen Jennings, Unison | |
| It will also allow departments to plan more effectively, as public sector pay accounts for about a quarter of all public spending. | It will also allow departments to plan more effectively, as public sector pay accounts for about a quarter of all public spending. |
| The government is already under pressure to solve the ongoing row over public sector pay. | The government is already under pressure to solve the ongoing row over public sector pay. |
| The TUC has criticised its centralised pay target of 2%, arguing that ministers are "on a collision course with six million public servants" because the deal represents a significant cut in living standards. | The TUC has criticised its centralised pay target of 2%, arguing that ministers are "on a collision course with six million public servants" because the deal represents a significant cut in living standards. |
| General Secretary of the TUC, Brendan Barber, said long term pay deals could be agreed but only on certain terms. | General Secretary of the TUC, Brendan Barber, said long term pay deals could be agreed but only on certain terms. |
| "I don't think we're against longer term deals in principle, but it's what are the terms on offer. | "I don't think we're against longer term deals in principle, but it's what are the terms on offer. |
| "The problem is last year we saw the government impose pay deals of only around 2%. Inflation was running at over 4%, so millions of public service workers saw themselves facing a real cut in their living standards. | "The problem is last year we saw the government impose pay deals of only around 2%. Inflation was running at over 4%, so millions of public service workers saw themselves facing a real cut in their living standards. |
| "Longer term deals can help create the space to address some of those longer term issues, but unions will only buy into this kind of idea, if they're very confident that people's living standards will be protected throughout the period of a deal." | "Longer term deals can help create the space to address some of those longer term issues, but unions will only buy into this kind of idea, if they're very confident that people's living standards will be protected throughout the period of a deal." |
| Karen Jennings, head of health at Unison, said its members were also concerned about the economy. | |
| "If we were to agree to a three-year pay deal that would really need to be a very decent, fair award. | |
| There is growing anger among police officers over their pay award | |
| "Also it would have to remove the risks of an unstable economy from the health workers themselves. | |
| "What I mean by decent and fair is that the economy is unstable at the moment, our members are concerned about paying their mortgages, about rising fuel costs and so on. | |
| "There's quite a bit of uncertainty over a three-year period, when things can change rapidly over months in the economy." | |
| Strike action | Strike action |
| Police in England, Wales and Northern Ireland are currently in dispute with the government over the offer of a 2.5% pay rise in two stages, which has not been backdated as it has been in Scotland. | Police in England, Wales and Northern Ireland are currently in dispute with the government over the offer of a 2.5% pay rise in two stages, which has not been backdated as it has been in Scotland. |
| Thousands of prison staff in England and Wales also walked out in August last year over the government's decision to give them their pay rise in two stages, causing the government to seek to reintroduce powers to ban such industrial action. | Thousands of prison staff in England and Wales also walked out in August last year over the government's decision to give them their pay rise in two stages, causing the government to seek to reintroduce powers to ban such industrial action. |
| Civil servants have also staged industrial action, which could be repeated, while strikes have been threatened in the NHS and local government. | Civil servants have also staged industrial action, which could be repeated, while strikes have been threatened in the NHS and local government. |
| As a result of the pay row, Prime Minister Gordon Brown has urged MPs to limit their own salary rises to keep them in line with those of public sector workers. | As a result of the pay row, Prime Minister Gordon Brown has urged MPs to limit their own salary rises to keep them in line with those of public sector workers. |
| The decision on MPs' pay will be made by the House of Commons, but Mr Brown said increases must stay below 2%. | The decision on MPs' pay will be made by the House of Commons, but Mr Brown said increases must stay below 2%. |
| The government has argued public sector pay must be controlled to curb higher inflation caused by rising energy and food prices. | The government has argued public sector pay must be controlled to curb higher inflation caused by rising energy and food prices. |