The Government are currently capping Civil Service pay rises at 2.0%; a policy which will costs all of us in the FC hundreds of pound over the next year.
The latest position on pay is that the FC has decided to implement the new pay scales covering the period 1st October 2008 through to 30th September 2011. This imposition was carried out even though a significant majority of union members did vote and of those who voted, again a substantial majority chose to reject the pay offer. The FCTU are disappointed that further negotiations were not possible prior to the imposition and had hoped that some common ground could have been found at this time: Pay Notice 1 2009.
Civil Service unions are continuing to maintain a dialogue with the Cabinet Office to take forward suggested solutions that will provide a fair, equitable and affordable pay for hard pressed Government employees.
The next stage in the pay round is to await the outcome of the new Treasury Remit Guidance for 2009. This guidance sets out the criteria for Departments when bidding for money to meet their running costs and paybills.
After three weeks of balloting and despite the dreadful conditions in the wider economic and employment market, members of all four unions have voted to reject this year's pay offer. Although the economic situation is undoubtedly dire - and this is in turn impacting on the FC's own income and budget forecasts - the unwarranted interference by HM Treasury in our negotiations and their abject failure to provide any justification for their positions means that the rejection of the offer is fully deserved.
We have now called on the FC EB to reconsider its position and to meet with us again to explore any options to address members' concerns.
Each of the unions is now in the process of balloting members on the 2008 pay offer. Please ensure that your ballot paper is returned to your union by no later than Friday 20th February.
The results of the ballot will be announced on Monday 23rd February.
Just before the Christmas break we concluded our negotiations for the 2008 pay round and HR have now presented a final offer to all staff: 2008 Final Pay Offer.
The offer will now be considered by each of the unions before it is put to a ballot of members in the coming weeks. The individual unions will each make their own comments and views known directly to their own members, and I shall not offer any further comment on this site until this process is complete. The results of the ballots will be announced at 1200 on Monday 23rd February.
As reported below, when we met with FC managers a couple of weeks ago it was apparent that the stranglehold that HM Treasury are placing on all Civil Service pay agreements was likely to choke-off any hope of reaching an fair and amicable agreement. We therefore suspended our talks in the hope that other talks then taking place at a national level between PCS and the Cabinet Office might be successful in increasing our room for negotiation.
We have since heard that those talks have been successful (see our full briefing in the PCS section), though at the moment we are waiting for further guidance from the centre as to quite what the immediate impact of the agreement will be. Allan MacKenzie (PCS Group President) will be attending a briefing for senior reps at PCS HQ on Monday 15th December, and we have scheduled further talks with FC managers on Thursday 18th December.
A further update for members will be issued after the meeting on 18th.
You will be aware from Pay Notice 5, which was issued by HR earlier this week that the FC has finally received clearance from HM Treasury (HMT) to begin negotiations on the pay increase that was due to us in October. We consequently had our first formal meeting with HR this time last week.
What Pay Notice 5 did not spell out was the full weight of the heavy hand that HMT has applied to reducing the amount of money that will be on offer this year. In our earlier information regarding pay, we outlined our expectation that the FC’s scope to negotiate with us would be limited by the 2.0% cap that HMT is imposing on all Civil Service pay awards; and we spelt out the likely impact that that could have had on our pay scales: for example staff at the top of pay band 6b could lose nearly £550 per annum in real terms.
However, it is now clear that the latest ‘revision’ of the FC’s remit by HMT is in fact a further cut to significantly below the 2.0% level. In addition, the restructuring which the offer is conditional on is strongly reminiscent of the divisive pay award that was first rejected by us, then imposed upon us in 2005. By imposing these restrictions on the FC it is clear that HMT are not interested in even trying to allow departments to reach a fair and amicable settlement, but are content to impose pay awards which are well below the rate of inflation, even based on this week’s reduced RPI rate of 4.5%.
So where to from here? Well given the restrictions on our local negotiations, our next best hope for an amicable settlement lies with the talks currently taking place between PCS and the Cabinet Office. When the planned ‘day of action’ was suspended ten days ago, a window of opportunity was opened for us—through the PCS National Executive Committee—to try and resolve all of the pay disputes across the Civil Service in one go. However the suspension can only last for 28 days and progress will need to be reported within the next seven days if further action is to be avoided. We have therefore scheduled further FC talks to take place the week after next when we know if progress is being made at a national level.
We in the FC are rightly proud of our reputation as strong deliverers of highly valued public services, and it is right that we are focused on delivering those services to meet the needs of our customers; whether they be Government Ministers, fellow FC staff or the general public. But we—the staff of the FC who deliver these services—are not only being treated in a truly shameful manner by HMT, but we are also facing a range of other threats, such as the Scottish Government’s current plans to raid capital from the FE estate to pay for their as yet unfunded commitments on climate change. My point therefore is that whilst it is right that we are focused on the needs of our customers, and right that we are focused on actual delivery, it is also right that we sometimes invest a little bit of time and effort to look after ourselves; and that time is now! We all work hard, and we deserve to be treated better than this. We are currently facing the strongest collection of challenges that the FC has faced for twenty years, and it will take all of us working together over the coming weeks and months to protect both our standard of living and possibly the future of the Forestry Commission.
With the correct implementation date for our pay award now long since based we have today heard that HM Treasury have again delayed the start of our pay talks: Pay Notice 4.
Although in recent years our pay awards have been less than the amount needed to maintain the real value of our pay scales and pensions, we have at least managed to keep our nose ahead of the field in comparison to the average of pay awards given to colleagues elsewhere in the Civil Service. This year however there is every indication that our pay offer will be severely restricted by Treasury, and once we have met the cost of pay progression (people moving up to the next point in their pay scale), the offer is likely to be well below the current rate of inflation. Combined with the ongoing delay in us even receiving the offer, this means that almost all of us in the FC could be worse off in real terms than we were this time last year.
A couple of weeks ago we posted information indicating the level of impact that the Treasury’s Public Sector Pay Policy could have on our standard of living, should it be imposed on the FC. For example, someone at the top of pay band 6b would lose nearly £550 per year in real terms, at a time when household food and fuel costs have risen significantly.
I strongly believe that our pay awards should be based on the real rate of inflation in order that we can all maintain our standard of living; and whatever the FC’s or the Government’s financial position, for Treasury to deliberately restrict and delay our pay rise when household bills continue to increase is both unfair and unacceptable. Over the coming weeks we shall be working with our colleagues across the Civil Service and wider Public Sector to try and overturn the restrictions being imposed by Treasury: we shall keep you all updated on progress through this website and would emphasise how important it is that we all take an active interest and role in helping to defend our standard of living.
Meanwhile you can be assured that once senior managers have concluded their discussions with Treasury, we are ready to enter into meaningful negotiations to try and achieve the best possible package for FC staff.
With our pay implementation date now upon us, poor processes within HM Treasury (HMT) again mean that we are unfortunately looking at a significant delay before we will receive our pay award.
As in previous years the joint unions submitted our pay claim back in April of this year in order to allow plenty of time for FC managers to seek the necessary approval which they need from HMT before they can make us an offer on pay. Although this was also done earlier in the year, HMT have again failed in their responsibility to consider the FC's request early enough to allow our negotiations to be completed by 1st October. Only now that the implementation date is upon us are HMT finally getting around to considering the FC's request, and consequently our negotiations are now stalled pending HMT's decision.
The delay is particularly annoying given the ongoing rise in all of our household bills, and can only be seen in the context of the Government's continued attempts to penalise all Civil Servants through their policy of limiting pay rises to 2% at a time when inflation is running at more than twice this figure. The joint unions are making plans to join the ongoing campaign against the Government's public sector pay policy: click here to find out more.
Further updates on the campaign and progress with our talks will be posted asap.
We have now confirmed dates for this year's pay negotiations which will start on Tuesday 16th September—they will probably last for about a month. This year's pay team are:
Robert Beaney - Chair
Edward Shephard - Secretary
Danny Williamson - PCS & lead
Allan MacKenzie - PCS
Tim Gill - Unite
Lorraine Adams - Prospect
Malcolm Currie - Prospect Full Time Officer
Roy Laird - GMB
As part of the run up to this years talks we shall be sending out information which highlights the potential impact the the Government's pay policy could have on staff in the Commission. Current government policy limits Civil Service pay rises to 2.0% at a time when the headline inflation rate is running at 5.0% (and could rise even further) and the costs of key household items such as food and fuel are increasing at a faster rate than this. This means that should the management offer stick within this limit (which we expect it to do) then the real value of our pay system will drop between £500 and £1500 in one year alone depending on your grade. We believe that many members will find this an unbearable level of loss and one which must be challenged. Further information will be posted in the coming few days.
Following the recent announcement of the scrapping of Choices and the Performance Related Pay schemes, two review groups have now been set up to look at future options for staff benefits and PMS. Further details are available on our People Strategy page.
Over the last couple of weeks a number of members have asked if we can provide further information about the unions' position on performance management and reward systems. For those that are interested the clearest statement of our position is contained within the current pay claim; however you may also wish to read a short paper on Performance Management and Reward Systems which the unions wrote for the Departmental Staff Council in 2005. The paper pre-dates the current FC People Strategy but reflects our position at that time.
After many years and overwhelming feedback from members the Executive Board have today announced that they will scrap the current performance related pay (PRP) and Choices reward systems: Pay Notice 3 (2008).
Ever since the introduction of the PRP in the 1990's, feedback from the majority of members has been that rather than motivating staff to improve individual and organisational performance the system has in fact had the opposite effect; de-motivating the majority of staff who are not awarded a bonus; discriminating against staff in the lower pay scales, and driving a divisive wedge amongst otherwise close-working teams. Equally importantly the system has distorted the purpose of the PMS system diverting its focus into a backward looking performance recording system.
The scrapping of the PRP system has been a major element of our pay claims for many years, and today's welcome announcement is an important step forward in modernising our pay system and diverting much needed resource into other under-funded areas. Over the coming months we shall be following up on our commitment to members in the last pay award and will be working with HR pay staff to review the broader PMS system to ensure that it recognises and rewards better performance in a way that is open and fair to all staff.
Today's pay notice also heralds the end of the FC's Choices scheme. Infamously trailed as being worth at least a 3% pay rise at a time when many staff were forced to take a real cut in pay, Choices is one of several discredited and ill-conceived schemes dreamt up by the former HR Director and has proved to be deeply unpopular; delivering little benefit to staff at extra-ordinary cost to the organisation. Over the coming months we shall be working with HR staff and consulting with members over which elements of the scheme might be taken forward in another format, and will ensure for example that the Child-Care Voucher Scheme (which was unnecessarily bundled into Choices) is continued without interruption. Although the scheme has proved unpopular, it is important to pay tribute to those of our members in HR who have worked hard under great pressure over the last few years to try and lever some benefits to staff.
After much discussion we have now submitted our joint pay claim on behalf of all of the unions for 2008.
The claim builds on the work of previous years, and as we enter a new spending period seeks to put our pay system on a more sustainable footing. The claim also follows up on last year's agreement by placing a renewed emphasis on reforming our much discredited performance related pay system. The claim covers the next twelve months, though we shall remain open to a longer term deal should the terms be appropriate.
The full text of our claim is available here: 2008 Pay Claim.
With the completion of the 2007 pay ballots we have now begun preparation for 2008. As a starting point we have 'obtained' a copy of the 2008 guidance to managers from the Cabinet Office, which is posted here for information: Cabinet Office Guidance. Some of the main points from this year's guidance are:
In light of the outcome of last year's award, the joint unions will be meeting later this month in order to agree a joint pay claim for 2008.