02 August 2002
A spokesman for the Employers Organisation, which represents councils, told Public Finance they are 'likely' to match the unions' call for a £5 per-hour minimum wage for the lowest-paid staff when the two sides finally restart face-to-face talks on August 2.
He said that other deals, including a multi-year settlement, 'are also under consideration'.
The three unions threatening to escalate industrial action over the dispute – Unison, the GMB and the T&G – said that a £5 per-hour offer was 'highly unlikely' to prevent a second day of strikes by council staff on August 14, 'unless other union demands are met'. Around 750,000 council staff joined a walkout on July 17.
Privately, however, the two sides admit to being pleased that progress could be made this week after months of deadlock.
A minimum hourly rate of £5 would increase the employers' 3% offer to around 4.1%, but only for the unions' lowest earners. The unions want rises of 6% or £1,750, whichever is the greater, for all staff.
Employers were expected to propose the £5 deal at parallel talks hosted by the Advisory, Conciliation and Arbitration Service on July 26, but a firm offer did not materialise.
Jack Dromey, the T&G's national organiser, said the offer would be a 'welcome step in the right direction'. But he warned that Friday's talks 'represent the last realistic chance of preventing a strike on August 14'.
Heather Wakefield, Unison's national secretary for local government, said councils would 'have to come to this week's talks with more than just the offer of £5 an hour for our lowest-paid members, otherwise we are back to square one'.
Meanwhile, a report published by Incomes Data Services has revealed that 'generous' pay deals in the public sector helped drive up UK pay levels in the second quarter of 2002 by an average of 2.5%.
Against a backdrop of 1% inflation, the IDS report found that average private sector rises were 2%–3%, while public sector settlements were 3.5%–4%.
PFaug2002
