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Pay Consultation Ballot Vote NOW

Please vote NOW in the Pay Consultation Ballot.

The deadline to receive your vote is 12 noon Wednesday 12 November. So vote NOW to make sure your vote counts.

Here’s another guide to what the offer means to you, and why the Branch Executive recommends you reject the offer.

Grade 1s (Spine Points 5 – 10)

We are expecting that Birmingham will honour the commitment in the national pay proposals that the December 2014 lump sum will be paid to those who have Living Wage supplements.

Those in the bottom half of the grade (Spine Points 5, 6 and 7) will receive a £325 lump sum.

Those in the top half of the grade (Spine Points 8, 9 and 10)will receive a £150 lump sum.

If you are a part timer, you will receive the part time equivalent of the £325/£150 lump sum.

In Birmingham, all our Grade 1s receive a supplement to their basic pay to bring it up to the national Living Wage. So whilst your basic pay will go up in January 2105, your Living Wage supplement will go down, so you will continue to receive the Living Wage.

The national Living Wage level is reviewed each year and a new level is announced in November, Birmingham applies the new level from April of the following year. The review has announced a 2.6% increase, taking the Living Wage to £7.85 an hour. So Grade 1 staff will also automatically receive this increase from April 1 2015.

What our pay claim was for was to set the bottom point of the Local Government at the Living Wage, and then a £1 per hour increase above that . That would mean that all our members above the bottom point would get a pay increase of at least £1 per hour. Effectively, over and above the normal increases in the national Living Wage, the new pay proposals give Grade 1 members just the £325/£150 lump sum during the 2 years of the proposed pay deal. That’s very little indeed.

Grade 2 (Spine Points 11-19) & Most of Grade 3 (Spine Points 20 – 25)

You will receive two increases

  1. A £100 lump sum in December 2014 (or the part time equivalent for part timers). This is not ‘consolidated’ or built into your basic pay.
  2. A 2.2% increase from 1 January 2015 to cover the 15 month period until31 March 2016.

The 1% lump sum and three months of the 2.2% (January – March 2015) is what you will get in this financial year, 2014/5. This is slightly above the original 1% offer made earlier this year. For those on the bottom of Grade 2 (Spine Point 11), the increase this year is 1.22%. The percentage declines as you get higher up the grade. Those at the top of Grade 2 will get the equivalent of 1.106% in 2014/5. Those in Grade 3 on Spine Point 25 will get the equivalent of 1.01%.

The pay increase from January 2015 being 2.2%, is higher than what we would have received of we had accepted the original 1% in 2014/5 and got another basic 1% in 2015/6. But the difference is very small. 

One way of looking at it is to say how much of the 20% we have lost in spending power over the last 4 years have we recovered. Inflation is now at 1.2%. That’s historically very low. If inflation were to stay at 1.2% for the next 16 months (and that is a major assumption), then at best we would be standing still. We would still be at 20% below in real terms what we had in 2010. If inflation increases, we would lose even more of our spending power.

Top of Grade 3 (Spine Points 26-28) and Grades 4 – 7

You will receive three increases

  1. A £100 lump sum in December 2014 (or the part time equivalent for part timers). This is not ‘consolidated’ or built into your basic pay.
  2. A 2.2% increase from 1 January 2015 to cover the 15 month period until 31 March 2016.
  3. A lump sum in April 2015 of (0.45% of your new January 2015 salary minus £100). This effectively tops up the December £100 lump sum so that with the three months 2.2% (January – March 2015), your total increase in 2014/5 will be 1%. This lump sum is also not consolidated into your basic pay.

Is this a reasonable pay increase ? Well, compared with inflation, it’s not looking good. Since April 2014, monthly inflation (CPI) has been between 1.9% and 1.5%. You will receive 1% for 2014/5. In October, the rate fell to 1.2%. That’s the lowest level in 5 years. For 2015/6, you will get 2.2%, but effectively 1% of that is carried forward from the previous year. So you actually get 1% in 2014/5 and 1.2% in 2015/6. Inflation would have to stay at the 5 year historical low for the next 16 months for your pay to not lose any value against inflation. How likely is that ?

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