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| Union warning on Brown pay deal | Union warning on Brown pay deal |
| (30 minutes later) | |
| Gordon Brown's plans for three-year public sector pay deals have come under fire from a number of trade unions. | |
| The police will be the first public servants to be offered the agreement. The BBC has learned that ministers are also in talks with nurses' unions. | The police will be the first public servants to be offered the agreement. The BBC has learned that ministers are also in talks with nurses' unions. |
| The PM says the pay deals are necessary to maintain long-term stability. | The PM says the pay deals are necessary to maintain long-term stability. |
| But his decision to limit public sector pay rises to 2% prompted unions to warn of a "collision" with workers. The GMB says the awards amounted to a pay cap. | But his decision to limit public sector pay rises to 2% prompted unions to warn of a "collision" with workers. The GMB says the awards amounted to a pay cap. |
| The TUC says any deals would depend on the terms offered. | The TUC says any deals would depend on the terms offered. |
| Mortgage rates | Mortgage rates |
| Public sector pay rises are recommended by an independent body which this year suggested 2.5% increases. | Public sector pay rises are recommended by an independent body which 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. |
| We suspect that these proposals are about driving down the pay of hard-working staff Mark SerwotkaPCS union Analysis: MPs' pay disputeSend us your comments | We suspect that these proposals are about driving down the pay of hard-working staff Mark SerwotkaPCS union Analysis: MPs' pay disputeSend us your comments |
| Royal College of Nursing general secretary Dr Peter Carter said many public sector workers had felt "betrayed" by that decision. | Royal College of Nursing general secretary Dr Peter Carter said many public sector workers had felt "betrayed" by that decision. |
| He told the BBC the RCN was interested in discussing three-year deals with the government if they could get a "fair deal". | He told the BBC the RCN was interested in discussing three-year deals with the government if they could get a "fair deal". |
| But he said: "Our members are actually going to be very cautious because they've still not recovered from the bruising they received last year. | But he said: "Our members are actually going to be very cautious because they've still not recovered from the bruising they received last year. |
| "There's not a lot of trust out there at the moment, however, we are prepared to take this in good faith and we will be sitting down with the representatives of the government later this week ... but we really do want to see the detail." | "There's not a lot of trust out there at the moment, however, we are prepared to take this in good faith and we will be sitting down with the representatives of the government later this week ... but we really do want to see the detail." |
| Inflation/pay link questioned | Inflation/pay link questioned |
| 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. |
| There is growing anger among police officers over their pay award | There is growing anger among police officers over their pay award |
| "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." |
| But Paul Kenny, head of the GMB union, which represents 300,000 public sector workers, told BBC Radio 4's World At One programme he had never seen any evidence that public sector pay was key to inflation. | But Paul Kenny, head of the GMB union, which represents 300,000 public sector workers, told BBC Radio 4's World At One 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? | 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." | "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." |
| 'Winter of discontent' | 'Winter of discontent' |
| Chancellor Alistair Darling says the new longer-term agreement will guarantee earnings growth for 5.5 million workers and will allow departments to plan more effectively | Chancellor Alistair Darling says the new longer-term agreement will guarantee earnings growth for 5.5 million workers and will allow departments to plan more effectively |
| However, the TUC says the government's pay target of 2% has put it on "a collision course with six million public servants". | However, the TUC says the government's pay target of 2% has put it on "a collision course with six million public servants". |
| The government clearly wants to be very tough on public sector pay Vincent CableLib Dems | The government clearly wants to be very tough on public sector pay Vincent CableLib Dems |
| TUC general secretary Brendan Barber said long-term pay deals could be agreed but only on certain terms. | TUC general secretary Brendan Barber said long-term pay deals could be agreed but only on certain terms. |
| "Reactions will critically depend on the terms on offer and whether the government will give people real confidence that their living standards will be protected," he said. | "Reactions will critically depend on the terms on offer and whether the government will give people real confidence that their living standards will be protected," he said. |
| "Confidence badly needs to be rebuilt after last year's railroading through of below-inflation rises and the undermining of independent pay review bodies." | "Confidence badly needs to be rebuilt after last year's railroading through of below-inflation rises and the undermining of independent pay review bodies." |
| 'Nothing new' | 'Nothing new' |
| Mark Serwotka, of the Public and Commercial Services union said: "We suspect that these proposals are about driving down the pay of hard-working staff who deliver the everyday things we take for granted." | Mark Serwotka, of the Public and Commercial Services union said: "We suspect that these proposals are about driving down the pay of hard-working staff who deliver the everyday things we take for granted." |
| And Unite's Gail Cartmail said while they were not in principle opposed to three-year pay deals, they did oppose the government's "dictatorial stance" on pay and urged it to stop "this macho and bullish posturing". | And Unite's Gail Cartmail said while they were not in principle opposed to three-year pay deals, they did oppose the government's "dictatorial stance" on pay and urged it to stop "this macho and bullish posturing". |
| Shadow chancellor George Osborne said there was "nothing new" about three-year pay deals as hundreds of thousands of public sector workers, like teachers, were already on them. | Shadow chancellor George Osborne said there was "nothing new" about three-year pay deals as hundreds of thousands of public sector workers, like teachers, were already on them. |
| Thousands of prison officers walked out in August over pay | Thousands of prison officers walked out in August over pay |
| "The real reason for today's pay announcement is that, thanks to Gordon Brown's economic incompetence, Britain borrowed in a boom and now has the largest budget deficit in Europe. The government has run out of money - It's as simple as that," he said. | "The real reason for today's pay announcement is that, thanks to Gordon Brown's economic incompetence, Britain borrowed in a boom and now has the largest budget deficit in Europe. The government has run out of money - It's as simple as that," he said. |
| 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". |
| The decision to award the public sector pay rise in two stages has prompted disputes with the police in England, Wales and Northern Ireland, prison officers in England and Wales, civil servants, the NHS and local government. | The decision to award the public sector pay rise in two stages has prompted disputes with the police in England, Wales and Northern Ireland, prison officers in England and Wales, civil servants, 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. |