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Public services in the aftermath of the economic crisis:

Public services in the aftermath of the economic crisis: . how social dialogue influences changes in public sector employment relations in the UK. Stephen Bach Alexandra Stroleny King’s College London. Introduction. 2010: Conservative-led Coalition  focus: fiscal consolidation

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Public services in the aftermath of the economic crisis:

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  1. Public services in the aftermath of the economic crisis: how social dialogue influences changes in public sector employment relations in the UK Stephen Bach Alexandra Stroleny King’s College London

  2. Introduction • 2010: Conservative-led Coalition  focus: fiscal consolidation • qualitative: familiar Conservative Party themes of outsourcing, local pay and deprivileging PS IR • quantitative: sharp reductions in public expenditure  PS employment cuts + incomes policy based on a two year wage freeze limited scope for workforce engagement & dialogue with PS trade unions

  3. Austerity - Drivers • Deficit  speed & depth • 2010 Comprehensive Spending review: • Aim: deficit reduction: 2009: 8.4% of GDP 2015: 0.4 % 2. Ideology + underlying economic assumptions • No consultation with TUs + employers prior to announcement of wage freeze • three quarters of deficit reduction linked to public spending cuts

  4. Planned cuts to UK spending: historical record – IFS 2012

  5. General Government Employment – OBR: March Forecast

  6. Measures - Wages • 2- year pay freeze (2011-12 & 2012-2013 ) 2 years: pay awards - 1% cap • across all areas of PS, staff earning £21,000 or less: some protection • progression arrangements - annual pay increments average PS pay still growing in nominal (but not real) terms • Pension changes 30th Nov strike  some concessions  dispute settled in local gov, partly in civil service, remains unsettled in NHS

  7. Local Government • LGA (Local Government Association) • NJC (National Joint Council for Local Government Services) • Local auth. = greatest formal employer autonomy + discretion over how match pay scales to national negotiated pay spine  ‘single status’ national framework (‘Green Book’) -some local variation – Part 2 vs. 3

  8. Local Government • 2010staffing reductions, changes in allowances for working anti-social hours, reduced mileage rates for car users, reduced sickness entitlement & annual leave • explicit trade-offs offered to workforce reg. contractually entitled incremental progressionstaff ballots – different outcomes • Section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992

  9. Case Studies

  10. Challenges • Employers  more assertive: • austerity => seeking changes • challenge of maintaining staff engagement & morale • HR capabilities to manage change effectively ? • TU weaker (membership + density => fall) options: • concession bargaining • not engage with employers • Attempt to mobilise & risk marginalisation

  11. Conclusion • Quantitative: job cuts, wage freeze; shrink state • Qualitative: expansion of a variety of providers, erode national systems of collective bargaining • Social dialogue: Nationally – limited Locally - variations

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