Public servants' pay rises lag private sector

Despite the unprecedented squeeze on public spending, unions say that workers should not have to bear the brunt of the cutbacks and are calling for the SNP government to end the current pay freeze from next year.

Yesterday, a new UK-wide report revealed that public sector pay settlements were running at zero in the three months to April, for the first time since records began in the 1960s. That compared to a year-on-year rise of 3 per cent in the private sector over the same time span.

Public sector employers in Scotland are warning that, as their budgets continue to be slashed and as the cost of services rises, they cannot afford to increase pay without imposing even tougher job reductions.

But union leaders say that, with inflation rising to 4.5 per cent, the current Scottish pay freeze is unsustainable. They hope to exploit a statement by First Minister Alex Salmond last week in which he pledged to "do things differently" with regard to the public sector in Scotland, promising to lead a "fair society" in contrast to the rest of the UK.

One union chief said Mr Salmond needed to "put his money where his mouth is" by guaranteeing that pay would rise from next April.

Yesterday's survey by research group Incomes Data Services (IDS), showed a clear gap between the pay awards in the public and private sectors. In manufacturing and energy, workers were beginning to see increases in pay which had been denied them during the recession.

"There is a little bit of a return to normality in the private sector," said Ken Mulkearn, editor of the IDS report. "Industries like the car industry and parts of the utilities industry are leading the way on settlements."

But he said the zero per cent increase in public sector pay over the first part of the year showed "the effects of government policy on public sector pay".

In Scotland, pay awards decisions are shared by Scottish ministers, councils and the UK government. SNP ministers have set a one-year pay freeze starting from April for NHS workers and civil servants. They are currently negotiating a two-year freeze for teachers, but are facing industrial action from two unions.

On the prospects for pay over the coming years, finance secretary John Swinney has said only that the current freeze will not last the length of this parliament, which ends in 2016.

Lynn Henderson, Scottish Secretary of the Public Commercial Services Union, which represents 34,000 civil servants in Scotland, said: "In reality, you can't talk about social partnership at a time when you are freezing their pay.If we are going to be different, put your money where your mouth is."

Dave Watson of Unison - which represents NHS staff and some core government staff - added: "We are open to having discussions about a range of things and we recognise the financial position. But at the end of the day the fundamentals are that our members are going to be facing some big rises in inflation. Another pay freeze will not be very easy to sell."