Grim 2011 ahead for 1.6 million local government workers

Unions UNISON, UNITE and the GMB, said today that local government

workers were facing a grim 2011, after their employers refused to make a pay

offer.

Local government workers have been hit with below inflation pay settlements

for five out of the last seven years. Even those earning under £21,000 will not

get the much-hyped £250 increase George Osborne promised them in the

Emergency Budget. Hundreds of thousands of staff are facing the prospect of

losing their jobs, and all are being hit with a 3% hike in their pensions

contributions.

At the same time, inflation and VAT hikes have piled the pressure onto family

budgets. The price of fuel has gone up by 37% since Jan 2007, and food has

gone up by 25% in the same period.

Recent research* revealed a Ôpoverty premiumÕ, whereby low-income families

spend nearly £1,300 more each year on basic goods, services and on heating

their homes than better off workers. This will include many local government

staff, as two thirds earn less than £18,000.

Heather Wakefield, UNISON Head of Local Government, said:

ÒWhile the employers stall on whether to make a pay offer or not, local

government workers are struggling with the rising cost of basic living. Low-

income families spend a big proportion of their income on everyday goods

like food and fuel. What little disposable income they did have has been eaten

up by consistently high inflation.

ÒOur members Ð people who provide vital local services like home care, who

work as teaching assistants and bin men are facing severe hardship.

Meanwhile, the bankers who caused this crisis are caught in different shower

altogether Ð as bonus billions rain down on them, as if this economic crisis

they caused had never even happened.Ó

Peter Allenson, Unite national organiser, said:

ÒAfter recent years of below inflation pay awards and last years pay freeze,

which effectively was a pay cut when inflation had taken its toll, low paid local

government workers are being pushed into poverty.

ÒThe employers didn’t even observe the miserly government pay policy last

year of £250 pounds for those earning less than £21,000.

ÒUnite members are outraged that having had the claim for some months

now there has been no offer made. If the employers dont start treating their

workforce with more respect local services will be damaged beyond repair.”

GMB National Secretary, Brian Strutton, said:

“ItÕs apparent that local government leaders are in a state of shock over their

budget cuts.

“But that should not prevent them giving proper consideration to the

reasonable pay claim we submitted.

“Council workers are going through hell and they have a right to be treated

with dignity and respect by their employers.”

*Research by Save the Children, out on Jan 11 2011.