The National Joint Council [NJC] Committee is recommending rejection of the offer
UNISON and Unite are both rejecting the offer and balloting for industrial action. GMB is not making a recommendation to its members.
Why should members reject the pay offer?
The NJC Committee is recommending that members reject the offer because:
– 60% of NJC employees on scale point 18 and above will receive just 1% on I April in 2016 and 2017
– The offer is for two years. RPI inflation currently stands at 1% but is predicted to rise to as much as 3% in 2017 and 3.3% in 2018. This means that the value of your pay will decline even further
– The higher increases on scale points 6 – 17 have been made to ensure that the lowest paid NJC employees reach the level of the statutory National Living Wage of £7.20 an hour on 1 April 2016
– These higher increases are to ensure that employers comply with the National Living Wage law. Members would have to be paid them – whether or not they were included in the offer – although some of the increase necessary in future years has been brought forward
– The higher rises on the lower pay scales are also to ensure that employers ‘keep ahead’ of further rises needed to reach the National Living Wage rate in 2020 – likely to be £9.35 an hour
The Branch will be carrying out a consultation on the employer’s offer in the next week to gauge how our members feel about the offer.
– In any case, almost two thirds of councils are now paying the real Living Wage of £7.85 pence an hour and £9.15 pence in London, so they would not face the cost of the National Living Wage. The employers’ estimate of the cost of our claim is over-inflated
– Members in the LGPS will start paying 1.4% National Insurance contributions from 1 April 2016 when ‘contracting out’ ends, reducing the pay offer further
– More than half of the cost of our claim for the real Living Wage for the lowest paid and £1 an hour for everyone above that rate would be met from higher tax and National Insurance income and reduced benefit costs. (Attached is research showing that, produced for us by the New Policy Institute)
– Many employers are cutting sick pay, annual leave and other NJC conditions. The employers refused to meet our claim for future protection of these conditions
We are currently working on calculations of the impact of the removal of contracting out from National Insurance on the two years of the offer. These will be made available as soon as possible.