Thursday, December 8, 2011

Low Paid staff lose thousands - but the Chief Officers sacrifice nothing !

Yesterday we had a marathon 3 hour consultation session with Birmingham Chief Executive, Stephen Hughes, and finance Cabinet Member Cllr Randall Brew on the proposed £106 million cuts for next year.

We don't see Stephen Hughes that often, so it was an opportunity to put to him directly the question which so many of our members have been asking - Are we really all in this together ?

Last week thousands of our members received their first monthly pay slips under the new Birmingham Council contract and thousands have lost up to 10% of their pay through the abolition of weekend and shift allowances, as well as other cuts in pay. Many thousands could see that they have protected pay for another 10 or 20% of their pay. Protection which will last until November 2012, when the full pay cuts will be carried out.

These are low paid cooks, carers, home carers, cleaners, library workers, security staff, leisure centre workers, parks staff and many others who only usually earn 13-18,000 a year - hardly enough to live on as it is. And they are losing as much as £4-5,000 a year, up to 10% of pay this year, and the full loss in November 2012.

Chief Officers and the Chief Executive himself are not having any cuts to their pay. Their contract does not have weekend or shift allowances anyway. But at their salaries, they don't need pay enhancements for working unsocial hours. Stephen Hughes is estimated at receiving around £233,000 a year. 47 Birmingham Council Chief Officers were reported two years ago as being paid £4.6 million between them.

It really sticks in the throat of our members that the very people who are making the decision to savage their pay are not taking any of the pain themselves. Frankly we don't want anyone to lose pay. But how many times have we heard the politicians say that the cuts are being borne by those with the widest shoulders. Not in Birmingham they're not.

So we put the first question to Stephen Hughes - "In view of the massive pay cuts you are inflicting on so many of our mainly low paid members, are you and the chief officers and the Cabinet members prepared to take a pay cut yourself to share the pain". We said that this would help restore some sense of moral leadership for themselves as chief officers.

And the reply ? No ! Hughes said that with respect to chief officers, he needed them to be able to manage the council in this most difficult situation the council faced. He would argue against any pay cuts. He later pointed out, after further pushing by UNISON on this point, that he had taken a pay cut through the 50% tax band (over £150,000) and increases in his pension contributions.

Cllr Randall Brew handled the question more diplomatically. He said he would take the proposal to the Cabinet for a discussion. He did not state his own view on it.

We drew attention to the Conservative Cabinet Minister for Local Government, Eric Pickles' request to all councils in October 2010 that they consider a 5% pay reduction for all those earning over £100,000 and 10% for those over £200,000. That didn't have much of an effect on them.

That's just in miniature what is happening all over the country and the world for that matter. Those with power and wealth are protecting themselves, and even increasing their wealth and power. Whilst the poorest bear the full cost of a financial crisis they did not create. The rich get rich and the poor get pay cuts.

But we will continue to challenge this at every opportunity. Don't just get angry - get organised.

1 comment:

  1. Are we all in it together!! Member's don't think so. Members have told me they now face the hard task of deciding what to cut back on next, fuel bills, clothes or food. What next will our members be asked to pay for all their hard work!

    John.Slotta Branch Membership Services Officer

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