Services Union
Office for National Statistics
offer (ONS MB 01/02)
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Date: 28 January 2002
Ref: ONS/MB/1/02
The final pay offer falls far short of our claim which was circulated to you in May 2001. PCS negotiators and the ONS Group Executive Committee are disappointed with the outcome of the negotiations. We believe that the statement issued by the ONS Executive back in July 2001 concerning the emerging overspend on the Census has had an impact. This is despite representations made by PCS to the ONS Executive, Government Ministers, the Treasury and the Treasury Select committee on the 2001 Census (who recently considered evidence from us on this issue).
This newsbrief summarises the main details of the final pay offer and gives detailed comment on what has been achieved; outlines outstanding issues; gives the recommendation from the PCS ONS Group Executive Committee; and the arrangements for the ballot of all members. Full details of the final offer is also attached with the appendices outlining the new pay ranges, pay progression mechanism and pay increases.
Through negotiations we have managed to move ONS management from their initial offer of 2% on base pay with an equity share distribution of 4.2.1. There were no changes proposed to last year�s progression arrangements; no underpinning; and no increase to the maximum of pay ranges.
Representations were made to the ONS Executive Committee during the negotiations on the structure of the offer. We particularly were concerned about the distribution of the equity shares based on the results of the staff appraisal report box markings as at 31 March, 2001 which showed an adverse impact for staff particularly ethnic minorities and part-timers in pay bands A and B. We argued strongly for the introduction of a guaranteed pay progression mechanism and for an increase in the maximum for all pay ranges.
| Box A: | 11 shares. |
| Box B: | 10 shares. |
| Box C: | 5 shares. |
| Box A: | 5 shares. |
| Box B: | 4 shares. |
| Box C: | 2 shares. |
The share values are given in the attachment on page 7. Through negotiations we have achieved a flatter distribution this year of equity shares for Bands A and B. In fact the underpin of �500 means all satisfactory staff in Band A nationally and A1 London get more than the equity share value. The underpin of �500 goes someway to addressing low pay as does the increase of to the minimum of pay ranges. The minimum wage nationally is now �10,095 and in London �12,374 per annum.
Our aim in negotiations was to get a proper pay progression mechanism that guaranteed progression through specified points to the maximum within a fixed and reasonable timescale of not more than 4 years. We have not achieved this in these negotiations but what we have achieved is a pay progression mechanism which sets a foundation for future negotiations. We recognise that we are a long way off our objective and we will, following the conclusion of the 2001 pay negotiations, be entering into early discussions with ONS management on improving the progression arrangements. We will also in these discussions look at the length of pay ranges. Our aim will be for much shorter pay ranges but not at the expense of the maxima, particularly, in the lower pay bands to reflect how long it takes to be competent at the job. The larger reduction to the scale length of D2 reflects the fact that no reduction was given in the 2000 pay settlement and it therefore brings the amount of the shortening to the same level as Bands A to C.
We are concerned that the offer gives no guaranteed progression between the 80% reference point and the maximum. Our policy is that the maximum is the rate for the job and our aim will be to get guaranteed progression to the maximum.
Assimilation to the new pay progression mechanism will be at the 1 August 2001. Staff will go to the appropriate milestone if their salary after implementation of this award means their salary is still below the milestone. After 1 August 2001 staff will move to their equivalent milestone if their salary is less than it on the anniversary each year of their entry to the pay range. For example if you have 4 � years service in the pay range at 1 August 2001 your equivalent milestone is the fourth. In February 2002 on reaching 5 years service in the pay band you will get a second pay increase to the fifth milestone if your salary is less.
This cash amount benefits the lower paid. The headline inflation rate at August 2001 was 2.1%. This offer gives members an inflation proofed pay increase.
Pages 5 and 6 of the attachment gives the new minimum and maximum for each pay range. Achieving an increase of 2.5% on the maximum of all pay ranges proved to be one of the most difficult issues in the pay negotiations. ONS management set out to give no increase to the maximum and we had to argue strongly and make representations to the ONS Executive Committee to get any increase at all. We are disappointed that we were not able to achieve a higher figure than 2.5%
We had hoped to achieve better improvements on annual leave but this was not possible in these negotiations. However, management have agreed to look at a longer term leave strategy as part of the 2002/03 pay negotiations.
We are opposed to any bonus schemes which are based on arbitrary decisions of managers. In negotiations management wanted to introduce as part of this year�s offer a bonus scheme. We argued against this and during negotiations we were able through improvements in the offer, particularly on progression, ensure no money was available for the scheme. However, management have insisted that reference is made to a bonus scheme in the offer and the commitment they are seeking is that we agree in principle to negotiate the introduction of a bonus scheme by 1 August 2002. The type of scheme etc will be the subject of future discussions with them.
We tried in negotiations to get all allowances increased but management said this was too costly. We will be looking at the recruitment and retention of all specialist staff within ONS and we will include those members that are currently in other specialist areas of work.
The overtime for Band D staff is different from those in Bands A to C. Our aim was for harmonisation of overtime arrangements with Bands A & B. The proposed new arrangements allow for paid overtime for excess hours worked exceeding 20 in a 4 week period. The excess hours will be paid at plain time rate. Any hours worked in excess of the standard hours, including those worked and/or travelled on week-ends, Public and Bank holidays, and non working days for part time staff, can be taken as time off in lieu on a hour for hour basis, or may qualify for an overtime payment depending on exceptional circumstances or the excess hours exceeding 20 in a four week period.
We are extremely concerned about the results of the staff appraisal report box markings for year ending 31 March 2001. We believe they have an adverse impact on staff in the lower pay bands and for particular groups of staff i.e. ethnic minorities and part time staff. In negotiations we argued strongly for the setting aside of performance pay because of these concerns. We argued in line with our claim for an across the board pay increase. Management refused to set the equity shares scheme aside but did agree to the narrowing of pay differentials for pay bands A and B. The underpin of �500 also gives the same pay increase to all satisfactory performers in Band A nationally and A1 London.
Management have already started work on equality proofing their performance management system. We will be looking at the results with them. The work is currently being carried out by an outside consultant who specialises in this area.
We will also be working with ONS on an equal pay audit which the Treasury has agreed should be carried out by all departments and agencies by 2003.
Probationers and Casual Staff - page 4 of the attachment gives details of the pay arrangements for probationers and casual staff.
Recovery of the Advance of Salary - the advance of salary paid with November salary will be recovered in total for full time staff in the March salary, assuming that the pay award is implemented in March. If it is not, then recovery will be later when the arrears are paid. The recovery of the advance payment to part time staff will be recovered by equal payments over four months. However, if this does cause financial difficulty then individual cases will be looked at sympathetically. If you fall into this category please contact your local union rep.
The PCS ONS Group Executive Committee (GEC) has met to discuss this final pay offer. We have been told by management that there is no more money available within the remit. In view of this the GEC does not believe we can achieve further improvements through negotiations. On this basis we therefore reluctantly recommend acceptance of this final pay offer to you.
Please take the opportunity to attend any workplace meetings arranged by your branch before you register your vote. Please return the ballot paper to reach the PCS London and South East Regional Office by no later than 3 pm on Friday 15 February 2002.
Veronica J. Bayne Senior National Officer
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