NJC Pay 2014 – 2015
Have your say on
local government pay
UNISON Local Government Service Group
UNISON Local Government NJC Pay 2014-2015
NJC 2014-15 Pay Claim: Context
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NJC – the poor relation of the public sector
Meagre1% NJC pay rise after 3 year pay freeze
Widespread redundancies and cuts to terms and
conditions
Local Government facing unprecedented
funding cuts – 40% by 2015
High profile pay campaign linked to possible
industrial action as part of wider strategy
UNISON Local Government NJC Pay 2014-2015
UNISON Options for the Claim
Two alternatives agreed by UNISON NJC
Committee for consultation:
Option 1 – Living Wage (LW) hourly rate to be
minimum pay rate, with an equivalent percentage
increase on all other spinal column points
OR
Option 2 – Flat rate increase of £1/hour on all pay
points which achieves the current Living Wage as
bottom NJC spinal column point and a flat rate
increase of £1/hour on all other spinal column points
UNISON Local Government NJC Pay 2014-2015
An NJC claim based on the LW
Both options are designed to provide:
 Sector wide – not local - bargaining to achieve
LW
 Maintenance of equal pay proofed single status
structures
 Prevention of new rash of equal pay litigation
 Clear focus for high profile campaign
UNISON Local Government NJC Pay 2014-2015
What does Option 1 mean?
A claim based on the Living Wage:
 £1/hour on scp 5 = £7.45 – the outside London
LW rate
 Equivalent percentage increase for scp 6-49
 Same increase throughout the pay spine
 Addresses poverty pay at bottom and relative
low pay throughout structure
UNISON Local Government NJC Pay 2014-2015
What does Option 2 mean?
A claim based on flat rate increase of £1 an hour
 £1/hour on new bottom NJC scp 5 of £6.45
brings it to current LW level of £7.45 outside
London
 Simple and also leaves grading structures intact
 But increases existing compression in middle
and higher pay grades unless extension to spine
UNISON Local Government NJC Pay 2014-2015
Options Compared
UNISON Local Government NJC Pay 2014-2015
What is the Living Wage?
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A wage sufficient to enable workers to live
decently and raise their families without hardship
A benchmark figure currently set at £7.45/hour
outside London and £8.55/hour in London
Below ‘official’ definition of poverty pay of
£7.47/hour – not a fortune
Paid on a voluntary basis
Updated each November
LW employer expected to implement new rate
within 6 months of announcement
UNISON Local Government NJC Pay 2014-2015
Where are we at with the
Living Wage?
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Small – but – increasing number of councils have
adopted LW
Implementation methods vary
Growing number of councils making pay awards
above NJC and including LW
High proportion councils now considering LW
Talk of LW common across LG – important
UNISON not lag behind
Aim is to achieve LW through collective bargaining
and maintain single status pay structures
UNISON Local Government NJC Pay 2014-2015
Why a LW claim this year:
The Political Case
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Growing public awareness and support for LW
TUC considering LW in Local Government
campaign
Think tank research continues to spotlight LW –
Compass/IPPR Living Wage Commission
High level political support pledged from Labour
and supportive noises from Coalition
UNISON Local Government NJC Pay 2014-2015
Why a LW claim this year:
The Economic Case
Clear macro-economic case for LW:
IFS study - benefits for the Treasury
 Queen Mary College research - multiple benefits
for employers
Economic benefits for local community because high
proportions of LG workers live in areas they work
and spend locally:
 APSE and CLES research on LW & higher local
spending – every £1 spent generates further 64p
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UNISON Local Government NJC Pay 2014-2015
Why a LW claim this year:
The Moral Case
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Local government – the only sector with large
numbers of employees below LW
LW is below official poverty level of £7.47/hour
Partnership working and transfer of public health
staff puts spotlight on low pay in local
government
LW as means to tackle rising inequality falling
income and impact of poverty
LW as positive impact on social cohesion, health
and future wellbeing
UNISON Local Government NJC Pay 2014-2015
Why a LW claim this year:
The Recruitment & Organising Case
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LW campaign provides clear focus and morale
boost for LG employees, members and activists
Branches, activists and paid officials will need to
engage very directly with members and non
members to explain campaign and commitment
to ending poverty pay in LG
Recruitment potential of high profile LW
campaign is clear
Option 2 has major recruitment potential
UNISON Local Government NJC Pay 2014-2015
Is a LW claim realistic?
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Councils and employers can’t have it both ways
– local implementation of LW but no – or low
– NJC increases
Many councils want to address pay of middle
and higher earners
Councils are leaving – or threatening to leave –
NJC to do better deals with staff
LW will boost morale and productivity
UNISON Local Government NJC Pay 2014-2015
Is a LW claim affordable?
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Local government pay bill has fallen for last 3
years in real terms and is now 23.09% lower
In the last year the gross pay bill fell by 10%
Many councils have significant reserves
School funding has been protected - although
not inflation proofed
The LGE has mooted a ‘clean up’ of the NJC
pay spine to get money into the system
LG section is modelling implementation options
UNISON Local Government NJC Pay 2014-2015
Your pay – your say
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Branches are asked to consult as widely as
possible – return results to regions by 4 October
The UNISON NJC Committee will consider
results on 11 October
GMB and UNITE are ending their consultations
to a similar timetable
The NJC Trade Union Side will agree contents
of the claim on 15 October
It’s time to end poverty pay in local government!
UNISON Local Government NJC Pay 2014-2015
UNISON Local Government NJC Pay 2014-2015