National Pay Negotiations – Update at 12 June 2013
After three meetings of the national negotiators the employers have made a final offer of an increase on all points of the common pay spine of 1%, plus a number of joint working proposals on other important elements of the trade unions’ claim. The background to this offer is one where:
• The HE sector faces considerable financial uncertainty as institutions continue to come to terms with the new funding regime
• There are further cuts to government funding for the sector predicted, and a public sector pay policy that limits pay increases to 1%
• Nationally, it is estimated that a 1% increase in the pay spine will translate into an increase of 2.4% in the sector’s pay bill as a result of incremental progression etc.
While there is no denying that a 1% increase is less than the current rate of inflation (the latest CPI figure is that inflation fell to 2.4% in April 2013), it is important to put this offer in context. Whilst the pay award implemented from August 2011 was only £150 on all points, equivalent to an increase of around 0.5%, total pay costs for this University increased by 2.5% between the financial years 2010/11 and 2011/12. The University’s income decreased during this period by 0.7%. These figures will not be untypical of other institutions in the sector.
Of those staff who were employed during this period (ie, from at least 1 August 2010 or earlier), 51% saw an increase in their earnings of over 1% and 40% saw an increase in earnings of more than 3% over this period. Increases in earnings take account of not just the national pay award (around 0.5% in this period) but also the normal service increment (3%) and discretionary increments and awards as well as promotions etc.
Trade Union Response
The trade unions have all expressed their disappointment with the offer.
The UCU is consulting its branches on the offer, with a recommendation that it be rejected.
UNISON is consulting its members on the offer, again with a recommendation that it be rejected.
UNITE has rejected the offer.
Low Pay
Newcastle University has recently agreed to cease using the first point on the pay spine (currently £13,486 pa) with effect from August this year. From August, the lowest adult full time salary will therefore be £13,839 pa based on current rates.
Zero Hours/Casualisation
Some of the trade unions are also campaigning about the excessive use of ‘zero hours’ or casual contracts. Newcastle University does not use ‘zero hours’ contracts. Short term contracts are used where it is appropriate to do so to meet temporary and fluctuating demands. There are also some casual working arrangements under which the worker is under no obligation to accept any work that may be offered. Many of these roles are taken by students who find these arrangements are often a convenient way of gaining work experience and earning some extra money while fitting in around their studies.
published on: 17th June 2013