POA Circulars

82 | 28.06.2010

Public Sector Pay Freeze and Budget Cuts

On the 22nd June 2010, the Coalition Government announced that there would be a Public Sector pay freeze for two years, although those earning below £21,000 would receive £250 in each year.

As you know, unified grades pay is normally determined as a result of recommendations from the Pay Review Body after receiving written submissions and oral evidence from the recognised trade unions, which of course the POA are.  Evidence is also taken from the Employer.

We are currently seeking legal advice on this very issue, as the Pay Review mechanism was set up as a compensatory mechanism for being denied the right to strike.  It is our belief this has not been taken into consideration when the pay freeze was announced.

Further, we are awaiting confirmation on whether pay progression will be paid irrespective of whether an individual is below £21,000.  The POA believe pay progression is contractual and forms part of your terms and conditions, but there appears to be rumour circulating that it will not be paid.

The Chancellor also announced the amount each Government department will contribute to the emergency budget savings of £6 Billion.

The Ministry of Justice have agreed with Treasury that they will save £325 million this year.  This is in addition to savings of over £400 million that they had already agreed to.

Michael Spurr at a meeting with trade unions has outlined NOMS savings as stopping non – essential capital projects and delivering the administrative estate and prison capacity programmes more efficiently.  This means that public sector prisons budgets will be squeezed dramatically once again.

The National Executive Committee will be considering various strategies to combat these disgraceful cuts over the coming months, without giving away the detail it will mean liaising with the TUC and other Unions on joint campaigns.  Various strategy meetings have already been attended.  Without doubt the Executive will need every single member to play their part when asked to do so.  Details of the cuts will further emerge in the Comprehensive Spending Review.  We will keep you updated via Circulars and our Website as information becomes available.

Yours sincerely

COLIN MOSES                   
National Chairman               

Yours sincerely

General Secretary