09 September 2009
I understand the proposed public sector pay freeze may be difficult to accept, especially when some everyday costs are still rising. But 2 independent benchmarking reports - the most recent of which has just been published - have found that States pay packages are significantly better than the private sector for the lower grades, are competitive for middle grades, but are lower than the private sector for higher paid staff.
This means the lower paid earn more in the States than in the private sector, so a pay freeze will not disadvantage those staff in comparison with their counterparts in the private sector.
And we must remember that when private sector jobs are being frozen or even cut, a pay rise for States staff is simply not viable. It would ultimately be funded by tax payers, some of whose own jobs are at risk.
It’s clear to me that a pay freeze is a reasonable response in difficult economic times. The States is facing deficits, even after the island pulls out of the recession. The proposed pay freeze would save £6.7 million, which is earmarked for front line services. Without it, we would be facing an even larger deficit, and more services would have to be cut to balance the budget.
I can assure islanders that the States Employment Board was extremely reluctant to take this step, but we had to take note of the reality in the private sector and of the difficult situation facing States departments. This new report has reassured me that this is the right step, by confirming that States employees at the lower ends of the pay scales are relatively well paid within the island.
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