Strikes loom across Scotland as pay frozen for second year

THE threat of strike action is looming across Scotland as trade unions reacted angrily to John Swinney’s announcement that the public-sector pay freeze is to be extended through 2012/13.

The SNP government’s Spending Review will also see the suspension of public-sector bonuses throughout that period.

Public-sector workers in the NHS, teachers, police and fire service will also have to increase their pension contributions as part of the package unveiled by the finance secretary at Holyrood yesterday.

Mr Swinney claimed that “savage reductions” at Westminster were to blame for the “tough choices” that he was forced to make to balance the books.

“To help maintain staffing levels it is essential that we continue to control pay growth and keep pay at an affordable and sustainable level,” Mr Swinney said.

“My aim is that 2012/13 will be the last year of a pay freeze and we may be able to see modest increases in the years that follow.”

The freeze would not be extended to those earning less than £21,000, who would continue to receive a rise of at least £250.

But the prospect of pay remaining static until 2013 led to union leaders threatening industrial action.

Dave Watson of Unison said: “In Scotland it is now almost certain that there will be ballots in the NHS [on strike action].

“Obviously, we are very disappointed with the pay freeze. Although this is the second year, it comes after a year in which the increase in pay was just one per cent. That means workers have seen a double-digit cut in living standards so there will be a lot of unhappiness.”

The ballot will involve Scottish NHS workers and civil service unions and it may mean they take part in the UK-wide strike planned for 30 November.

Lynn Henderson, Scottish Secretary of the PCS civil service union, said: “Our members expected something different from the SNP Government.

“On the one hand John Swinney says he is against UK attacks on workers’ pay, but uses the other hand to impose the same second-year freeze on staff wages against rising inflation at 5 per cent, 19 per cent fuel increases and the threat of increased pensions contributions.

“PCS members in Scottish Government will be taking strike action on 30 November with millions of other public-sector workers on pensions, but the extension of the pay freeze by our own government and employer will provoke anger as never seen before.”

Mr Swinney said he had “no choice” other than to follow the example of the UK government and increase employee pension contributions for half a million public-sector workers outside local government.

The SNP government had wanted to delay an increase of up to 3.2 per cent in contributions paid by public servants such as firefighters, police officers, teachers and NHS workers.

But last week, it emerged that the Chief Secretary to the Treasury Danny Alexander had warned Scottish ministers that to do so would result in the Scottish budget being cut by £8.4 million per month.

Mr Swinney said the Conservative-Liberal Democrat UK government was taking the wrong course of action.

He warned: “Should the UK government refuse to change its position, the Scottish Government will have no choice but to apply the increases in employee-pension contributions for NHS, teachers, police, and fire schemes in Scotland.

“We will put in place protection for the low-paid and we will leave decision-making on the local government pension scheme to those who manage the scheme. We will not impose on local government in Scotland what the UK government has imposed on us.”

Mr Swinney said the government would continue its commitment to a “Scottish living wage” by upgrading this to £7.20 an hour. Ministers will also be freezing their own pay in 2012-13 for the fourth year in succession.

The announcement by Mr Swinney also angered the medical profession.

Brian Keighley, the chairman of the BMA in Scotland, said: “Doctors have accepted a temporary pay freeze, but continued attacks on NHS staff terms and conditions of service and a raid on public-sector pensions is completely unacceptable. This is a short-term solution that will have long-term repercussions for the NHS.

“Doctors working on the frontline of healthcare are already witnessing the damaging effect that cuts to the nursing workforce and pressure to achieve savings is having on patient services.

From a UK-perspective, talks aimed at averting strikes by public-sector workers will be held today with David Cameron’s government saying it is committed to “genuine engagement” with unions.

UK ministers will meet with representatives of the TUC, which called for the day of strikes on 30 November.

A Cabinet Office spokesman said: “We are totally committed to genuine engagement with the unions. We have a lot to talk about and there are proposals on the table for discussion.

“Thursday’s meeting with the TUC is part of ongoing talks. Central discussions have been going on for several months, and the government is committed to working with the unions to achieve necessary reforms.”