Tagged: pay freeze

£163,000 pay gap between the richest and poorest at Sunderland City Council

The wage gap between the highest and the lowest paid Sunderland council workers is now more than £163,000.

At the top, Sunderland City Council’s chief executive – currently Dave Smith – takes home an annual wage of £175,699 before tax, while a cleaner earns £12,435 per year for a 37-hour week.

Union representatives have now called for the difference to be slashed ahead of TUC’s Fair Pay Fortnight, which starts today.

The campaign comes as the full council is due to meet on Wednesday, when members will be asked to recommend approval of the draft pay policy statement for 2014 to 2015. If passed, it will then be formally adopted and published by the end of the month.

In justifying the salary level, a report – to be presented at the meeting – says the post is in line with a large city authority, with responsibility for the provision of wide-ranging services to 275,743 residents and a £678.8million service budget.

It reads: “The chief officer pay policy is designed to be easily understood and be transparent to the post holders, key stakeholders and the public.

“The structure and level of the pay arrangements is designed to enable the council to attract, motivate and retain key senior talent for the authority.”

Sunderland Unison branch secretary Diane Peacock said the union has campaigned for the difference in council salaries to be addressed as part of the Living Wage Campaign – which says people should be paid the amount needed for a basic standard of living.

She said: “Public sector workers have lost on average £4,000 since 2009, due to the pay freeze and increase in the cost of living.

“Many workers in the council earn below the Living Wage, forcing working families to rely on food banks, and hitting the local economy as people don’t have money to spend in it. The TUC’s Fair Pay Fortnight campaign starts next week, and our branch in Sunderland will be playing a part to urge the authority to work towards reducing this ratio and reward public sector workers for the excellent service they provide.”

Other high-earners within the authority, include the deputy chief executive, executive director of commercial and corporate services and executive director of people services, which all fall within a salary range of £117,572 and £128,063 per year. Deputy executive and corporate directors, of which there are four, are on between £81,960 and £97,327.

The lowest paid employees at Grade A are newly-appointed cleaners for the first six months of service.

Apprentices are not included in the report.

Source – Sunderland Echo,  24 March 2014

North East council workers in call for fair pay

Today local government employees in the region will take part in protests, stunts and rallies at lunchtime and outside work hours as part of their campaign for fair pay and fair council funding.

The activities today will highlight the state of Local Government pay and the impact of cuts on local jobs and services.

Clare Williams, UNISON Regional Convenor, said: “Today is an opportunity for local government members across the region to tell their employers that they have had enough of being treated like second-class citizens. In the last four years they have seen a massive fall in real terms in their earnings, and are struggling to make ends meet for themselves and their families.

“Many are having to resort to Food Banks to put food on their tables. They are demanding a decent pay rise in recognition of the valuable role that they perform in delivering quality public services to children, young people, the elderly and vulnerable in our communities. The government cuts are having a devastating impact on service provision and on those who are committed to delivering public services. It’s time to stand up for local government and tell the public how government cuts are hitting us all.”

Since 2010, council workers have had a three year pay freeze and then just a 1% increase last year, representing an 18% fall in pay in real terms, back to the level of the 1990s. Council budgets have been cut by 40% by the Coalition government.

UNISON, GMB and Unite – the unions representing 1.6 million Local Government workers – formally submitted their pay claim to employers last November, and expect a formal pay offer later this month.

Ms Williams added: “Politicians need to do more than just talk about supporting the Living Wage, now is the time for Local Government employers to implement it and end low pay for their staff. More than half a million of whom currently earn less than the Living Wage. More than 75% of the workforce are women, whose contribution has been consistently undervalued. UNISON wants this pay increase to be part of a new gender agenda to give women in Local Government the recognition they deserve in their pay packets.”

She said members in local government now need a commitment from the government and the Local Government Employers to make a decent pay offer.

Source – Newcastle Journal  04 Feb 2014

North East NHS managers get pay rises as nurses’ salaries cut in real terms

Health chiefs have received pay rises of up to 17% while nurses and health care assistants experience real term cuts topping 12%, a union has revealed.

Analysis of senior executive NHS pay by the Royal College of Nursing (RCN) has shown that bosses at hospital trusts in the region were awarded salary increases averaging 10.5% between 2010 and 2013, while mid-band nurses managed a paltry 0.1%. Taking into account inflation some suffered a real terms cut of 12%.

Health Secretary Jeremy Hunt previously warned that health service employees would face a pay freeze until March 2016 and that they might not get the 1% promised for 2014 unless unions accept greater pay restraint.

Glenn Turp, regional director for the RCN northern region, said: “Frontline nurses and health care assistants have already borne the brunt of the Government’s pay restraint policy over many years. And we know that, once inflation is factored in, NHS salaries have in fact been cut between 8% and 12% in real terms, between the period 2010 and 2014.

“The Chancellor promised to deliver a 1% pay rise this year for the front line, but the Secretary of State for Health is now trying to introduce a further pay freeze until March 2016.

“This is completely unacceptable. It is particularly galling that the Government is quite happy for NHS managers to get significant pay rises, while at the same time, the front line takes another hit.

“A 1% pay increase is a perfectly reasonable and proportionate request, particularly when put in the context of the rises in senior managers’ pay. The Government needs to stop having one rule for the frontline nursing staff, and another for senior bosses.”

The RCN northern region compared the salaries of chief executives across all North East trusts for the financial year 2010-11, with the most recent financial year data available, 2012-13.

Ian Renwick, chief executive of Gateshead Health NHS Foundation Trust, received the largest pay rise of 17% as his wages jumped from £190,000 to just under £223,000.

Jim Mackey from Northumbria Healthcare NHS Foundation Trust saw his salary rise 9%, from £211,000 to £230,000.

Newcastle Hospital’s NHS Foundation Trust’s chief executive, Sir Leonard Fenwick, is paid the most at £246,000, although the trust has insisted he has had no pay rise in three years, despite the RCN suggesting he had received a 6% increase.

A spokesperson for Gateshead Health NHS Foundation Trust said: “The salaries of our chief executive and of all our executive directors are decided by an independent nominations and remuneration committee and this is to ensure they are in line with publicly available salary benchmarking information.

“As one of the country’s top performing NHS Foundation Trusts, it is important that those with ultimate accountability are remunerated appropriately so that we can retain the very best healthcare leaders in the North East NHS.”

Figures show that a mid-band 5 nurse salary in the North East increased from £23,563 in 2010/11 to just £23,589 in 2012/13, a rise of just 0.1%. In 2011-12 a pay freeze was implemented by the Government to NHS staff earning more than £21,000.

A spokesperson from Northumbria Healthcare NHS Foundation Trust said: “The remuneration of our leadership team is decided independently to make sure that salaries are in line with those of other high performing NHS organisations.

“To be clear, however, along with the rest of our staff, no director at Northumbria Healthcare has had an increase in pay since the pay freeze was implemented in 2011/12.”

Last night, the Department of Health defended its decision to limit pay rises for NHS frontline staff.

A spokesperson said: “The NHS is rightly playing its role in public sector pay restraint.

“Average pay has increased by around 1%. Despite this, many NHS staff continue to be well paid for the lifesaving work they do and the majority of staff have received additional incremental pay increases of up to 6%.

“The number of admin staff, managers and senior managers in the NHS has fallen by over 21,000. This will lead to a significant reduction in managers’ costs.”

Source – Newcastle Journal  03 Feb 2014