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Chief Officers Pay Claim Update 2
CHIEF OFFICIALS 2004 SALARIES OFFER.
On the 23 September, 2004 the Employers made the undernoted offer:
2.95% on all Spinal Column Points with effect from 1st April, 2004
and 2.95% on all Spinal Column Points with effect from 1st April,
2005
The offer is a first and final offer over a two year period from
1st April. 2004 to 31st March, 2006 and is the best that can be
achieved through negotiations. Branches are being asked to consult
members as to whether the offer is acceptable or not. If you have
a view please inform your branch secretary.
Chief Officers Pay Claim Update 1
A Pay Claim for
Chief Officials for an increase of 3.5% effective from 1 April, 2004 and 5% effective
from 1 April, 2005 was lodged with the employers on 29th April, 2004. The Officials
side Secretary, Joe Di Paola, has on two occassions written to the employers side
secretary Lynne Dickson requesting a response to the claim. A letter dated
21st July 2004 has now been received that says the appointment to the Employers
Side of the JNC have still to be confirmed and it is anticipated that the appointment
will not take place until mid August. Branches are being circulated with copies
of the correspondence and asked for comments. 2004 Salaries Claim for
JNC for Chief Officials in Scotland
1 INTRODUCTION
The salaries claim for Chief Officers in Scottish local authorities is
once again set against a background of continuing financial constraint. The real
value of incomes of Chief Officers in Scottish local authorities falling compared
to equivalent jobs in the England & Wales and private sector.
2 CLAIM The claim seeks a multiple year settlement based on a percentage
increase for all Chief Officials commencing at the settlement date of 1 April,
2004. An increase of 3.5% on all spinal column points effective from 1 April
2004
An increase of 5% on all spinal column points effective from 1 April
2005 The claim does not include other service conditions issues.
3 BACKGROUND Our claim for Chief Officers in local authorities in
Scotland is made against this background. The second and final phase of the current
pay settlement expires on 31 March 2004. The forthcoming negotiations are set
against the background of the Scottish Executive having declared a public sector
pay policy of 2.5% for the current year. The IRS Panel of Experts forecast an
average increase in earnings for 2004 at 3%. All of these elements will be an
influence on the outcome of negotiations. There continues to be a widening
the pay gap between private sector and public sector settlements particulary at
senior officer level.. Chief Officers continue to make a major contribution to
the operation local authorities and have done so through all the difficult times
and the pay award should reflect this contribution. Chief Officers in Scotland
deserve to be treated no less favorably than their colleagues in England &
Wales and other local government employees. 4. PAY The Scottish
Local Government Chief Officials salaries settlement must seek to:-. * maintain
and improve the living standards of all members.
* reach a settlement that
is comparable with senior posts in the public and private sector.
* that
is both relevant to all members and considered to be realistic and affordable.
5. ISSUES INFLUENCING SCOTTISH LOCAL GOVERNMENT PAY The
following issues should be taken into account when considering the salaries claim.
* Local government pay has been falling behind other public and private sectors
of the economy. Local government workers have seen their gross pay deteriorate
against both average and private sector pay in the wider economy from 1992 to
2000 By 2000 local government pay was just 88% of the average gross pay in the
economy as a whole. * The reports of the Income Data Services and The JNC for
Chief Executives and Chief Officials of Local Authorities in England and Wales
reveal that the median salaries for a range of Chief Officials posts were generally
higher in England and Wales than in Scotland. * The Management Pay Review report
from Income Data Services reveals that for the three months to January 2004 that
managerial and professional salaries rose by an average 2.9%, while the median
rise was 3%. NHS Chief Executives salaries have risen by 63.9% as opposed to Local
Government Chief Executives of 61.7% in the period 1992 to 2002. * Only 15%
of Chief Executives in Scotland earn more than £100,000 per annum * Average
wage awards were 3% for the economy as a whole - 3.4% in the public sector, whilst
the private sector was 2.9%. * Recent pay settlements within the Scottish public
sector have been linked to modernisation and flexibility. * Reports of the
Income Data Services identify that a number of Scottish local authorities reported
recruitment and retention problems for a number of key professional posts. 6.
STATISTICS a. Inflation The headline rate of inflation - the
annual rise in the all items Retail Price Index (RPI) which includes mortgage
interest payments and indirect taxes - rose to 2.6% in March from 2.5% in February,
2004. The Consumer Price Index (CPI) which the government uses to guage interest
rates, fell to 1.1% last month from 1.3% in February, 2004. The CPI however does
not include housing costs and so the .25% increse in mortgage rates is not reflected
in CPI. Almost all employees have expenses relating to housing. So the RPI is
the correct figure to use when considering the cost of living. b. Inflation
Forecasts Forecasters reported by Industrial Relations Services (IRS) predict
headline inflation will rise to 3.4% by the third quarter of 2004, thus giving
an average of 3% for the year. c. Average Earnings The GB whole
economy average earnings growth rate was 4.9% in the three months to February
2004 compared with a year earlier. This is up 0.2 percentage points on the January
rate. However it is the private sector that is now powering ahead, not the
public sector. Earnings in the private sector rose by 5.1% in the year to February
(up 0.3 percentage points on the January rate) whereas public sector earnings
growth was static at 4.2%. Earnings in the services sector rose by 5.2% (up 0.1
percentage point from January) and in the manufacturing sector they rose by 3.5%
(unchanged on January). The measure of average earnings that excludes bonuses
was also up by 0.2 percentage points on the January rate. It stands at 3.8% up
on this time last year. d. Earnings Forecasts There are conflicting
pressures on earnings growth at the moment. The government is attempting to restrain
wages in the public sector (a move opposed by unions), but a return in economic
confidence means that some areas (especially finance and public administration
sectors) are planning on recruiting. A Chartered Institute of Personnel and Development
(CIPD) survey reveals that 53% of organisations are planning to recruit in the
current quarter. This is at a time of continuing low unemployment. However
earnings growth is not being shared across the economy, with those working in
the manufacturing and public sectors seeing unchanged, and falling, earnings growth
respectively. The IRS panel of experts does not expect the current rate of average
earnings growth to be sustained, with the consensus opinion that earnings growth
will slow to 4.1% in the middle of the year, and average 4.1% over the year. The
Royal Bank of Scotland said “With economic growth returning above trend in [the
second half of 2003], wage inflation in the private sector is likely to increase.
With government spending largesse to continue through to the end of the 2005/6
financial year, there is no reason to expect any significant slowdown in public
sector recruitment and, therefore, wage pressures.” 7. CONCLUSION The
Officials' side believes this claim to be realistic approach to Chief Officers
salaries. The claim shows the necessity for an appropriate increase for Chief
Officers in Scottish local authorities in 2004 which will ensure at least equality
of treatment with all other local government bargaining groups. All employees
deserve a pay increase that maintains and improves their living standard. The
claim draws on the comparisons made in respect of the wider wage economy. Consequently,
the Officials' Side looks forward to the Employers' early response. top | 
Scotland's
public service union 
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