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Unions attack plans to freeze pay of 20,000 council staff

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Published Date: 22 June 2009
UNIONS have reacted angrily to controversial plans for a pay freeze for 20,000 council staff to plug a £92 million black hole in the local authority's finances.
It is hoped the cost-cutting measure, which is being considered by city leaders, could save up to £22.9m.

Opposition politicians today said senior council officials should follow the lead taken by a string of chief executives and directors in the
private sector by taking a longer pay freeze or pay holiday.

Council chiefs have already agreed to a 2.5 per cent pay rise for all staff this year but are now looking at a number of scenarios which could see non-teaching council staff facing a pay freeze in 2010-11 and the city's 3,400 teachers having their pay frozen in 2011-12.

All of the council's seven department heads earn over £100,000 a year, with chief executive Tom Aitchison the highest earner on £150,912, but the council's lowest earners are on closer to £12,000.

The Evening News revealed last month that the city council claims it needs to find the £92m in savings over the next four years to meet anticipated tough new government efficiency targets.

City leaders today said they were not currently considering pay cuts for senior staff but said the issue would be kept under "constant review".

Councillor Andrew Burns, the city's Labour leader, said: "I do think there has been a lot of unnecessary scaremongering used by the administration on this issue.

"It is quite clear that all of this is based on assumptions by the council. The Scottish Government has not even set its budget.

"The council's low-paid workers can ill afford to take what is a pay cut in real terms and it is the other end of the scale where we should be looking if cuts are necessary, and I stress 'if' because I am still not convinced this is necessary.

"I think those at the top end of the pay scale should be looking at pay freezes or pay holidays as we have seen in a lot of private sector firms such as British Airways."

City leaders are also looking at a number of other new money- saving initiatives including hiring fewer staff, reducing overtime payments and using fewer private consultants. A list of frontline council services, such as bin collections and street sweeping, which could be outsourced, has been drawn up.

John Stevenson, Unison branch president at the city council, said: "Our members have delivered millions of pounds of savings for this council in recent years and I think they will be rightly angry at these proposals.

"There will be members who are now facing losing out twice, both with a pay freeze and the changes to the job structures where they will see their pay either stagnating or dropping."

A council spokesman said: "There are currently no plans to discuss the issue of pay cuts for senior staff but difficult financial challenges lie ahead and the position will be kept under constant review, taking into account developments at a national level."





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  • Last Updated: 22 June 2009 9:51 AM
  • Source: Edinburgh Evening News
  • Location: Edinburgh
  • Related Topics: Edinburgh Council
 
1

Big bob 79,

22/06/2009 12:10:55
If pay levels are not frozen then job will be axed to meet these new targets, I really hope the union ballot its members before doing anything silly.
2

Russell339,

Edinburgh 22/06/2009 12:19:32
The public sector needs to step into line with the private sector here. The vast majority of private sector workers have not been given pay increases this year, and are probably unlikely to next year. In a large number of cases, employees have required to take pay cuts to avoid redundancies. I doubt the unions will get sympathy from the general public, and they risk a backlash from members.

This is a good opportunity to weed out the inherent inefficiencies that exist in the public sector. Andrew Burns states that a wage freeze is a cut in real terms, i can't see how this is true given that RPI inflation, which is traditionally used to negotiate wage rises currently stands at -1.1%?
3

Skip McClendon,

22/06/2009 12:22:54
Were Das Cooncil falling over themselves to offer their staff bumper pay rises when inflation, particularly on housing and fuel, was recently running out of control?

They can't have it both ways. If they are not prepared to bump pay in line with inflation when costs are rising, then they can't expect staff to willingly accept a pay freeze when inflation has stalled.

Oh, and here's some advice for one whopping great "efficiency saving" that would sort out Edinburgh's finances at a stroke: scrap the ridiculous tramline white elephant.
4

FFUpper,

Edinburgh 22/06/2009 12:24:51
No.2 Exactly, it's about time that people working in the public sector started living in the real world. Why do they think that becasue they work in public sector they are entitled to a pay rise every year regardless of performance.

They have to shoulder some of the fincial heartache that thousands of people in the private sector are!
5

simonp,

22/06/2009 12:39:45
If their pay is frozen how will ECC attract the high-calibre staff it needs and how will it be able to retain those they already have? To see good customer service in action phone the car permit extension section-Victor Meldrew is alive and well!!!
6

Mallory,

Edinburgh 22/06/2009 12:54:26
Why should the public sector expect to avoid what everyone else has to cope with during a recession? No brainer really, frozen pay or job losses , take you pick.
7

Big T,

22/06/2009 12:57:46
The workers in the private sector (who pay the taxes to support the public sectot) and having to accept salary cuts never mind a wage freeze!

These Council workers need to take a reality check! Never mind a wage freeze - let's get rid of their final salary pension schemes before the country goes completely bust trying to fill the massive financial black hole to support these schemes!
8

,

22/06/2009 13:08:05
Comment Removed By Administrator
Reason:
9

Keith Mack,

22/06/2009 13:13:29
If they cut back on the number of sick days staff have, that would maybe equal what a pay rise would be. Compared to the privates secto the number of sick days in the publuc sector is significantly higher on average. Staff are entitled to 10 days sick, before anybody questions their record, so this is basically treated as 10 days holidays and a lot of folk make sure they use this up before the end of the year.
10

Trams shams,

22/06/2009 13:18:02
Hey, guess what your money is going to be used for. TRAMS!!! 8ollocks to schools. 8ollocks to Police. 8ollocks to work... Lets get the Trams up and running to get these nice little tourists in to save our City. But wait, what's this I hear. They can get in due to the mountain of waste left by the striking bin men!!
11

Trams shams,

22/06/2009 13:19:25
Spot on Keith. I know of people that plan these days in as part of their leave.
12

It's Leith for me!,

22/06/2009 14:00:48
they'll do the pay freeze anyway whether the unions like it or not, then the unions will call a number of one day strikes - why not compromise from the start - a 2.00% (best they're likley to get in the current climate) is about a weeks worth of pay - what they'd lose over 5 strike days, which is probably what it would take to make the council give in - why not freeze the pay, but give everybody an extra week off for one year - 10/11?
The SNP clowns will be out of office at the next election and then the wasteful concordat can be dumped and local authority funding for Scotland sorted out and the shortfall problem resolved. We'll be back in boomtime by then, according to Mr Darling our local Edinburgh MP and we all know Labour MPs don't lie:-)
13

Noodle doodle,

22/06/2009 14:16:10
The private sector takes the hit in the recession because they're the ones who rake in the £££'s in the good times. Not many public sector workers get share options, company cars and christmas bonus£e£.

Boo hoo hoo, mr private sector worker, welcome to the real world yourself, it's sh*t and some people are better cushioned than you.
14

Russell339,

Edinburgh 22/06/2009 14:26:36
#13 - Private sector workers get money in the good times because they work hard for it. Most public sector employees wouldn't last a day in the private sector.

Public sector workers don't get bonuses, or company cars, or share options because they don't need or deserve them. In contrast, not many private sector workers get 6 weeks holiday a year, can work flexi-time,and have a government subsidised final salary pension scheme. The private sector demands results from it's employees and does not tolerate below par performance, hence bonuses, whilst the public sector employs those who can't hack it in the private sector.
15

Noodle doodle,

22/06/2009 14:34:43
#14, that just makes the private sector sound like a pretty foolish choice all-round. If the above posters are to believed the private sector has all the pain and the public sector gets all the reward so you'd have to be jaw-droppingly dumb not to work in the public sector and reap the benfits wouldn't you?

As for public sector workers not lasting a day in the private sector, pick any teacher from heriots/watsons etc and fling them into castlebrae, we'll see who doesn't last the day ;-)
16

PaulB,

Edinburgh 22/06/2009 14:35:17
#14 - A touch of jealousy there perhaps? It was also the reckless actions of the private sector which led to this recession ;)
17

paul the binman,

22/06/2009 14:36:03
I dont get 6 weeks holiday a year and I dont work flexi-time nor do I get 10 days sick leave a year,I can put 3 self cert sick notes in up to a max of 8 days.Still,you were almost right,and on the subject of public and private,if they freeze our pay how can I pay enough tax to bail out the greedy private sector the next time it over eats at its trough?
18

Skip McClendon,

22/06/2009 14:51:04
Lots of private/public sector infighting here, a lot of it ill-informed.

I have worked in both the public and the private sectors (currently private) and have found lots of good employees and lots of bad employees in both. Plenty of useless clock-watchers in the private sector, just as there are plenty of hard-working intelligent people in the public sector.

Lots of the people who would be hit by this freeze are low-waged, and certainly not the future recipients of "gold-plated" pensions.

I still think that the Council can't have it both ways. Unless they were handing out massive pay-rises when inflation was running out of control (they weren't), then the employees have every right to fight against pay cuts / freezes when inflation has stalled.

My own pay has recently been reduced in the private sector, but I recognise that I am still better paid than many in the public sector. I can't fault them for resisting pay cuts, given that many of them (particularly female employees) have been unfairly underpaid for years.
19

Clen Peapus,

Edinburgh 22/06/2009 15:40:51
Pay in the public sector is traditionally lower than the private sector, with no bonuses or notable benefits. However the public sector tends to be more stable, with less likelihood of redundancy and more secure pension arrangements.

There appears to be a perception amongst private sector employees that anything private sector is wealth-generating, and to be commended. Whilst the public sector is a parasitic burden, draining the nation's wealth.

Are teachers, police, the NHS and firemen really a burden? Conversely, is selling overpriced financial products to people who can't afford them wealth generating? Encouraging people to spend outwith their means to buy the latest designer jeans, or trendy phone.

Clearly each sector has its merits. There is little point in claiming one is more righteous and worthy than the other.
20

hubris,

22/06/2009 16:26:55
i too have experience of both sectors

if the Union pushes this argument at this time they will end up costing jobs

they ought to be able to explain that to their members
21

gus1940,

Edinburgh 22/06/2009 18:24:14
Local Government employees are paid according to Nationally Negotiated Salry/Pay Scales.

If a council does not pay its employees according to said scales It would seem that they are in breach of contract as I would be surprised if the relevant Contracts of Employment do not refer to said nationally negotiated scales.
22

GorgieRepublic,

Edinburgh 22/06/2009 23:16:22
Its pretty harsh for the ordinary rank and file on average wages, but a lot of us have had worse, hours cut, pay cut and we haven't had the benefits that come from a local government job in terms of hours, holidays and pensions. I do feel sorry for some of them but when you're taking a big pay cut and your taxes pay their wages its hard to be overly sympathetic. Maybe we can persuade that great humanitarian Fred the Shred to share some of his vast millions with all of us needy of the parish?
23

syntax,

Edinburgh 22/06/2009 23:32:16
By all means freeze pay. However, I trust that prices will also be frozen ? Hmmmmm. I thought not. So salaries go down in real terms and prices go up in real terms and we are supposed to sit back and accept it? I don't think so.

My employer gets what he pays for. If my salary is frozen or cut I do less work. If I get paid the rate for the job I work my little socks off.

That's the real world. If I'm not going to get the pay for the job then I certainly ain't going to be doing the work. companies are still raking the money in - Goodness, Bankers are STILL getting milliions in salaries (look at the latest RBS proposal). These greedy nerds seem not to learn. The peasants (that's us) are on the verge of revolting - it will not be a pretty sight. Myabe we need to tan in a few more windows????

 

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