13 November 2006
The States Employment Board has restated its determination to resist inflationary pay rises by keeping public sector pay increases in line with the rise in the Retail Prices Index.
The Board has met to discuss the manual workers’ rejection of this year’s offer and has decided against changing its position. So far one public sector pay group - the police - has decided to accept the deal and one - the manual workers - has rejected it. Other groups, including nurses, teachers, fire officers and prison staff, have yet to make a decision.
The States Employment Board sets policy for the public sector workforce. Its initial offer of 2% was increased after negotiation to a choice of two awards: either 2.4% for 2006/ 2007, or a two-year offer of 2.5% for 2006/07 and another 2.5% for 2007/08.
During the last year the Chief Minister, Senator Frank Walker, and the Deputy Chief Minister, Senator Terry Le Sueur have both strongly stated their commitment to resisting above cost of living pay rises for the long term benefit of the whole Island community.
Today Senator Walker commented: “This decision should not come as a surprise to States employees and there are two very important issues at stake here. Firstly, the public tell us the States must reduce its spending. We can and must respond to this and we must do it without cutting essential services. We know from benchmarking studies that public sector pay in Jersey is generous, compared with jurisdictions elsewhere. Giving employees a pay rise which is above the cost of living would simply increase that differential and increase the cost of running our public services.
He went on: “Secondly, it is very important for the whole Island that the States does all it can to reduce the rate of inflation. Inflation is bad for everybody, both in managing everyday household expenditure and in attracting new investment to Jersey. That is why it is public enemy number one. We will do all we can to combat it through a variety of different measures and controlling pay rises is one critical part of the equation. It is, I know, unappealing medicine, but I firmly believe it is the medicine which the States must take.”
In announcing the news, the Employment Board made the following points in support of its decision:
i. 2.4% is in accordance with the Retail Prices Index as at the end March 2006. This is the quarter which is traditionally used for States pay negotiations which have a review date of 1 June.
ii. The States budget remains under pressure and the States is determined to reduce public expenditure wherever possible. The States itself decided that the budget for the next three years should include a provision for pay awards of 2.5% per annum. 2.5% has been inscribed in the budgets for pay for both 2006 and 2007 and if these figures were to be increased there would inevitably have to be a reduction in services to the public.
iii. The vast majority of States employees are amongst the best paid employees in the Island and enjoy significant differentials over their UK counterparts. This has been confirmed by salary surveys conducted this year on behalf of the employer, and is especially the case at the lower and middle ranges of our pay scales where most States employees are paid. Combined with final salary pension schemes, other attractive employee benefits and a high level of job security, this makes the States compensation package amongst the best in the Island.
-ends-
Notes to Editors:
1. For further information and comment, please contact Chief Minister, Frank Walker on 440400 or Deputy Chief Executive Mick Pinel on 440002.
2. The States of Jersey Police have settled their pay award this year, opting for the two year option of 2.5 per cent per year for 2006-07 and 2007-08.
3. States manual workers have rejected the one year option of 2.4 per cent for 2006-07 in a secret ballot.
4. The following tables compare Jersey public sector pay with the UK public sector and with Jersey’s private sector:
SALARY COMPARISONS WITH THE UK PUBLIC SECTOR** |
|
|
|
|
Based on job match (except *based on job size) |
Total Earnings above mid-point (%) |
|
|
|
|
|
|
Lowest Grade |
Highest Grade |
Average |
|
|
|
|
Overall |
38.4 |
33.3 |
39.6 |
Police |
32.9 |
41.72 |
47.5 |
Fire |
33.6 |
33.6 |
32 |
Prison |
48.3 |
47.3 |
53.8 |
Teachers |
44.8 |
20.6 |
30.9 |
Manual Workers * |
48 |
28.1 |
39.8 |
Civil Service * |
28.7 |
27 |
38.4 |
Nurses |
57 |
41.4 |
46.9 |
NB Teachers - 5 grades were not matched as they are no longer used in the UK. The figures given above are based on matched jobs only.
SALARY COMPARISONS WITH THE JERSEY PRIVATE SECTOR |
|
|
|
|
Based on job size |
Total Earnings above mid-point (%) |
|
|
|
|
|
|
Lowest Grade |
Highest Grade |
Average |
Overall vs Jersey Private Sector |
|
|
|
25.61 |
(11.58) |
3.00 |
Police |
35 |
(2) |
22 |
Fire |
29 |
19 |
27 |
Prison |
n/a |
n/a |
37 |
Teachers |
n/a |
n/a |
(6) |
Manual Workers |
30 |
(3) |
12 |
Civil Service |
20 |
(16) |
4.67 |
Nurses |
34 |
(12) |
1 |
|
|
|
|
** Comparisons as at 1st January 2006 |
|
gov.je