Workplace Report September 2010

Bargaining news

Scots councils freeze pay

A three-year virtual pay freeze has been imposed by local authority employers in Scotland who say they expect a funding shortfall of £3.8bn over the next three years, while demand for services continues to increase. Last month they imposed a 0.65% pay increase for 2010-11 (backdated to April) followed by pay freezes in both 2011-12 and 2012-13, after withdrawing an existing offer of 1% this year, a pay freeze next year and 0.5% in year three.

Councillor Michael Cook, spokesperson for the Convention of Scottish Local Authorities (COSLA), blamed the union side for this outcome: “We tried everything we could to get the unions to realise the gravity of the financial pressures we face and our determination as far as possible to protect jobs and services. They have left us in an impossible position by not recognising the interests of their members”.

But they have been accused of misrepresenting the position. In UNISON’s case rejection of the offer was backed by a consultative pay ballot in which 80% voted against. Dougie Black, UNISON trade union side secretary and lead negotiator, said: “Our position was that we wanted to look at re-shaping the offer and we were not asking for more money”. COSLA had budgeted for 1% this year but “have chosen to impose a lower figure than the Tory/Liberal Democrat coalition are prepared to pay public sector workers south of the border”.