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| Version 9 | Version 10 |
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| Brown defends public sector pay | Brown defends public sector pay |
| (about 1 hour later) | |
| Gordon Brown says he wants three-year pay deals for public sector workers, rather than the traditional annual deals, to help keep UK inflation low. | Gordon Brown says he wants three-year pay deals for public sector workers, rather than the traditional annual deals, to help keep UK inflation low. |
| At his monthly media conference, the PM said the measure was necessary to maintain long term economic stability. | At his monthly media conference, the PM said the measure was necessary to maintain long term economic stability. |
| Ministers face mounting pressure over a decision to limit public sector pay rises to 2%, with unions warning of a "collision" with workers. | Ministers face mounting pressure over a decision to limit public sector pay rises to 2%, with unions warning of a "collision" with workers. |
| Lib Dems say Labour would be wise to remember "the winter of discontent". | Lib Dems say Labour would be wise to remember "the winter of discontent". |
| The TUC say any three-year deals would depend on the terms offered. | The TUC say any three-year deals would depend on the terms offered. |
| Mortgage rates | Mortgage rates |
| Public sector pay rises are recommended by an independent body and this year suggested 2.5% increases. | Public sector pay rises are recommended by an independent body and this year suggested 2.5% increases. |
| But the government decided to award that rise in two stages - so it equates to a 1.9% rise - saying it would tackle higher inflation and keep interest rates and mortgage rates low. | But the government decided to award that rise in two stages - so it equates to a 1.9% rise - saying it would tackle higher inflation and keep interest rates and mortgage rates low. |
| If we were to agree to a three-year pay deal that would really need to be a very decent, fair award Karen JenningsUnison Analysis: MPs' pay disputeSend us your comments | If we were to agree to a three-year pay deal that would really need to be a very decent, fair award Karen JenningsUnison Analysis: MPs' pay disputeSend us your comments |
| The budgets of Whitehall departments are set for three-year periods and ministers now want 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 ministers now want to see public sector pay awards for nurses, the police and other public servants to be fixed in the same way. |
| Mr Brown said staging public sector pay awards last year had "helped break the back of inflation in Britain in 2007". | Mr Brown said staging public sector pay awards last year had "helped break the back of inflation in Britain in 2007". |
| "Now in 2008, we have to show that we can maintain stability over the long term," he said. | "Now in 2008, we have to show that we can maintain stability over the long term," he said. |
| "To send out the best possible message, about long-term inflation and about stability and to be fair to public sector workers, one way forward is a move towards long-term public sector pay settlements. | "To send out the best possible message, about long-term inflation and about stability and to be fair to public sector workers, one way forward is a move towards long-term public sector pay settlements. |
| "It means as people face mortgage bills and utility prices they know exactly what their income is likely to be. | "It means as people face mortgage bills and utility prices they know exactly what their income is likely to be. |
| "The whole purpose of this is keeping inflation under control... There is no point in a big salary rise that's wiped out by a big inflation rise." | "The whole purpose of this is keeping inflation under control... There is no point in a big salary rise that's wiped out by a big inflation rise." |
| 'Collision course' | 'Collision course' |
| Chancellor Alistair Darling says the new longer-term agreement will guarantee earnings growth for 5.5 million workers. | Chancellor Alistair Darling says the new longer-term agreement will guarantee earnings growth for 5.5 million workers. |
| 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. |
| There is growing anger among police officers over their pay award | There is growing anger among police officers over their pay award |
| 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. |
| "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," he said. | "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," he said. |
| "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." |
| Pay cap | |
| But Paul Kenny, head of the GMB union, which represents 300,000 public sector workers, told BBC Radio 4's Today programme he had never seen any evidence that public sector pay was key to inflation. | |
| He said it amounted to a crude cap on public sector pay: "Can you tell me what the price is going to be of your litre of petrol in two years' time? Because I can't predict that and yet what the government seem to want to tie us into is a deal which will come at the bottom of the cycle. | |
| "Restricting inflation by public sector pay means cuts in the living standards of public sector workers." | |
| The government clearly wants to be very tough on public sector pay Vincent CableLib Dems | |
| Karen Jennings, head of health at Unison, said if its members were to agree to a three-year pay deal it would need to be a "decent and fair" award and remove the risks of an unstable economy from the health workers themselves. | Karen Jennings, head of health at Unison, said if its members were to agree to a three-year pay deal it would need to be a "decent and fair" award and remove the risks of an unstable economy from the health workers themselves. |
| Royal College of Nursing general secretary Dr Peter Carter said: "Irrespective of whether salaries are set for three years or 12 months, what nurses want and deserve is a fair deal. | Royal College of Nursing general secretary Dr Peter Carter said: "Irrespective of whether salaries are set for three years or 12 months, what nurses want and deserve is a fair deal. |
| "If we were to sign up to a long-term pay settlement in today's volatile economy we must have a mechanism that will protect the living standards of nurses from any future rises in inflation. What's right now may not be right in two years time." | "If we were to sign up to a long-term pay settlement in today's volatile economy we must have a mechanism that will protect the living standards of nurses from any future rises in inflation. What's right now may not be right in two years time." |
| MPs' pay | |
| Lib Dem deputy leader Vincent Cable warned that being too tough could result in a second "winter of discontent", when the country was regularly crippled by strikes in 1978/9. | Lib Dem deputy leader Vincent Cable warned that being too tough could result in a second "winter of discontent", when the country was regularly crippled by strikes in 1978/9. |
| "The government clearly wants to be very tough on public sector pay," he said, but "they are going to have to be very careful about how they manage this". | "The government clearly wants to be very tough on public sector pay," he said, but "they are going to have to be very careful about how they manage this". |
| Police in England, Wales and Northern Ireland are in dispute with the government over the staging of the 2.5% pay rise - in Scotland it was paid in full. | |
| Thousands of prison staff in England and Wales also walked out in August over the government's decision to give them their pay rise in two stages. | |
| 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. |
| Meanwhile, Mr Brown has urged MPs to limit their own salary rises to below 2% keep them in line with those of public sector workers. | Meanwhile, Mr Brown has urged MPs to limit their own salary rises to below 2% keep them in line with those of public sector workers. |