Tuesday, 20 November 2012

Fair Deal ballot briefing 1 – Vote YES/YES


The verdict of members is clear – we refuse to accept pay cuts. Our recent consultative ballot delivered an overwhelming mandate to move forward with our Fair Deal campaign. More than 98% supported the campaign objectives, with over 77% willing to take industrial action to deliver them.

We are now balloting members on that action and these briefings will concentrate on each of our key campaign objectives to show why members should vote YES/YES.

Feedback from the consultative ballot and workplace meetings shows that members have had enough of the pay freeze and the decline in pay in the Ministry of Defence. Inflation continues to increase, eroding the small increase that those earning below £21,000 recently received and leaving those who got nothing for the second year running further adrift. The recent gradual recovery in the value of wage settlements in the wider economy, coupled with the incremental increases awarded to the armed forces, has increased the sense of grievance among defence sector members.

Every member has their own story to tell about what the pay freeze has meant to them, but unless we secure pay rises at least in line with inflation, the MoD will soon have members of staff working hard by day but queuing for food parcels at night.

How our pay has been cut

The impact of a pay freeze is hard to see because it is slow and subtle, but it is huge. The table below shows what our pay should be if the MoD and this coalition government wasn’t devaluing our pay year on year:


Grade
(National)
Maximum £
Maximum if kept pace with RPI inflation since start of pay freeze in 2010*
Difference – pay cut in real terms £
B1
69,409.00
76,696.95
7,287.95
B2
57,245.00
63,255.73
6,010.73
C1
42,565.00
47,034.33
4,469.33
C2
34,936.00
38,604.28
3,668.28
D
27,973.00
30,910.17
2,937.17
E1
20,676.00
22,846.98
2,170.98
E2
17,584.00
19,430.32
1,846.32
* RPI inflation of 10.5% from Apr 2010 to Sept 2012. Source: www.statistics.gov.uk

Pensions

Unfortunately our employer has actually reduced our take home pay, through increased pension contributions. The April 2012 increase was the first of three, with more to follow each April until 2014. We now pay more and work longer for a smaller pension when we eventually retire.

Other factors

Pay restraint for the foreseeable future and mooted proposals for regional pay, will push more members below the breadline. Using the same timeframe (Apr 2010 to Sept 2012) we can see just how far our pay has fallen behind the real cost of living:

Product or Service
Apr 2010 price
Sept 2012 price
Increase £
Increase %
Gas *
£600 per year
£720 per year
£120
20%
Electricity *
£500 per year
£590 per year
£90
18%
Petrol
120.5p per litre
140.2p per litre
19.7p
16.4%
Public transport (based on London 7 day travelcard zones 1-4)
£36.80
£41.80
£5.00
13.5%
Childcare (based on 25 hours per week)
£88.00
£101.00
£13.00
14.8%
Average weekly shopping basket
£65.80
£77.00
£11.20
17%
 * These figures do not include the recently announced energy price increases.

Conclusion 

Working in the MoD at present is bad for your wallet. But we have a chance to do something about the hurt we are all suffering, by forcing the MoD to change course.

By voting YES/YES in our ballot, we can force the department to take our concerns on pay seriously and to demand fair pay as part of a Fair Deal in Defence.

Make your voice count and vote for a fairer future, where all staff are treated with dignity and respect and all who work in defence receive at least a living wage.

The statutory ballot runs from 19 November – 5 December. If you haven’t received a ballot paper by 27 November, then please contact 0207 801 2634/2645.











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