Comparing public and private sector wages creates the false impression of a two-tiered system – according to a new report from Incomes Date Services.
The report – ‘Public Sector Pay Premium – Fact of Fiction’ – makes two key points: that not all public sector workers earn more than all private sector workers; and that not all public sector jobs have counterparts in the private sector. This, in addition to the massive variation in private sector workers, creates the impression of a public sector ‘pay premium’.
To illustrate this, the report looks at how the earnings of public sector staff – who represent 20% of UK employees – compare to four sections of the private sector: finance & business services; manufacturing; construction; and wholesale/retail/hotels/restaurants.
Staff working in finance & business services, which also represent 20% of UK employees, earn almost 30% more than their counterparts in the public sector; those in manufacturing earn almost 15% more, and, in construction, almost 14% more. The lowest earners in the private sector bring the average earnings down, which creates the illusion of a public sector premium.
UNISON assistant general secretary Karen Jennings said:
“The myth that all public sector workers earn more than all private sector workers needs to be put to bed once and for all.
“The highest, and lowest wages in our society exist within the private sector, and it is here that the greatest divide exists between rich and poor. There are those in sections of the private sector that earn wages the vast majority of our society could only dream of yet, unsurprisingly, you never hear about the ‘finance sector pay premium’.
“There is no great divide between public and private sector – there is a divide between rich and poor that has been made worse by the disastrous economic policies of this government. Attacking the public sector is a means to justify further cuts to our public services, when what the government should be doing is addressing the massive economic inequalities that persist in our society.”
The report found that the issue is further complicated by the difference in skills mix, qualifications, experience and gender in the public and private sectors. The public sector has a higher proportion of higher-skilled jobs, and women make up two thirds of the workforce. It also has a higher proportion of older employees, and of people with a degree or equivalent.
http://www.unison.org.uk/file/Public%20Sector%20Pay%20Premium%20final.pdf
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