Why Pay Matters

Pay matters. So do public sector workers. Every paramedic, nurse, school meals worker and teaching assistant is an invaluable thread in the fabric of our society and economy. By setting a 2 per cent limit on public sector pay, the government is inflicting real pay cuts on the very people we all depend upon.

UNISON, with its 1.4 million members, the majority delivering public services, is part of the ‘Speak up for Public Services’ campaign launched by the TUC just a few weeks ago. We are united in our demands for fair pay for the six million public sector workers in the UK. They don’t drive inflation as has been argued in some quarters. Indeed, research by Incomes Data Services (IDS) clearly shows that this is not the case. Public sector workers, just like all other workers, need a living wage and this won’t be delivered through pay cuts. Leading poverty experts estimate that the minimum wage should be £6.75 per hour — a figure UNISON has firmly in its sights.

The Labour government inherited a recruitment and retention crisis in our public services. Cash was tight, morale was low and services suffered. A lot has been achieved since then, but those positive advances are threatened by a squeeze on pay. We must look to the future. Pay cuts put talented graduates off joining the public sector. Already students have complained to us that pay, conditions and bonuses are better in the private sector. We all want quality public services, but they do not come cheap. Staff deserve fair pay and good conditions.

Many public sector workers are low paid women. They often work part time and many are suffering the double whammy of unequal pay and real cuts in pay. When more women find it harder to make ends meet, they will be forced to claim benefits.

Each week new reports emerge of mounting household bills. These reports are a constant reminder that the cost of living is rising fast in the UK. We’ve seen huge hikes in energy costs. Even before these rises, one in six British households was facing fuel poverty — a disgraceful statistic in one of the richest nations. Families are forced to buy fuel through pre-payment meters, costing them an average of £195 per year more. Those who have least are forced to pay more.

Meanwhile, rich fuel companies are building up massive profits, driving inflation and reaping huge rewards. The government should take action against those companies, hold an enquiry into prices and levy a windfall tax.

Food inflation is running at 5.9 per cent — faster than at any time since the 1970s. And housing costs continue to rise — the latest Office of National Statistics figures show that housing costs take up the lion’s share of household expenditure at a massive 20 per cent. Price hikes in these three alone — fuel, food and housing — hit the low paid hardest and form an ever-increasing percentage of their expenditure. That alone should make the case for fair pay for public service workers.

It doesn’t matter how much the government quotes the CPI as a measure of inflation, people know that it does not reflect what is happening to the pound in their pocket. The RPI is a more accurate measure of inflation — it includes housing costs for a start. These factors should not be ignored in determining public sector pay levels.

We know that more cash can be made available to improve pay and conditions for public sector staff. For example, local councils have over-delivered on central government efficiency savings by £1 billion. By March 2008 total savings will be £4.25 billion. Why can’t these savings be invested in the workforce that local authorities and local communities rely on for the delivery of services?

If you want first class public services, if you want the sick and elderly cared for, your children well-educated and protected and your streets clean and safe, you have to invest in the workforce.

And remember, too, that public service workers have always been the Labour Party’s core supporters. They will feel angry and betrayed if they are singled out for such unfair treatment. UNISON is determined to secure decent pay rises for all its members.