NHS Pay: the proposed agreement for 2008/9 to 2010/11Josie Irwin

Head of Employment Relations, Royal College of Nursing

April 2008

The Talks

Occurred in parallel with evidence to NHS Review Body

Began Sept 2007 Staff Council Exec + Scotland and Wales CSR pay limit 2% ‘the obstacle’ Offer made in January 2008 (2.45%, 2.2%, 2.2% =

7% over 3 yrs) rejected by negotiators Restructuring costs would have been deducted from

these headlines

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The talks continued

On 31 January, offer raised to 7.2% - rejected by negotiators

Staff side agreed to ‘pause’ talks, await Review Body report and possibly negotiate yrs 2 and 3

Talks on 2 and 4 April generated proposed agreement (including NHS RB recommendation)

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Context

2007/8 Settlement included commitment to talks on a multi-year pay deal and restructuring

RCN strategy: address long bands, raise ceiling of band 5, close gap with teachers

Evidence to NHS RB – ‘substantially above inflation award’

Inflation CPI 2.5%, RPI 4.1% Forecast: CPI below 2%, RPI 3% by year end Worsening economic situation

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More Context

Government public sector pay policy 2% per year for 3 year CSR period

PRB reports to date: DDRB 2.2%, Prisons 2.2%, Armed Forces 2.6% (1 year)

Scotland Teachers – 2.25%, 2.5%, 2.4% Local Govt offer in Scotland – 2.5%, 2.5%, 2.5%

Local Govt offer in England & Wales - 2.5%

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The proposed agreement 2008/9 – 2010/11 in summary

Three year proposal subject to consultation 2.75% PRB recommendation for 2008/09 paid in full Yr 1 2.75%, Yr 2 2.40%, Yr 3 2.25% pay & allowances Band 5: changes to structure in Yr 2, 3 and 4 Band 1: removal of bottom point in Yr 2 Inflation ‘re-opener’ after Year 1 Continued role for NHS Review Body Trade Union Facilities Agreement Work Life Balance Statement Discussions on bands 6 & 7 The ‘working week’

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Restructuring in detail - yr 2 Abolition of the first pay point raises the

NHS minimum wage to £6.77 Changes to increments in band 5 worth:

– 3.62% point 19– 4.19% point 20– 3.01% point 23– 3.08% point 24– 2.73% added to point 25, (top point of band 5,

third point of band 6)

Total value inc headline uplift 2.4% = 2.54%

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Yr 3 in detail Flat rate increase of £420 for points 1-13 (3.17% at

lowest point) Reduction in number of points in band 5 Changes to increments in band 5 worth:

– 2.31% point 19– 2.36% point 20– 5.18% point 21– 2.57% point 23– 2.53% point 24– 2.59% added to point 25, (top point of band 5, third point of band

6) Total value inc headline uplift 2.25% = 2.5% And yr 4 additional money on points 19, 20, 23,24 &

25, bringing total value of the package to 8.1% (7.99% over 3 years)

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Pay Point Pay band Pay 07/08 Year 108/09

Year 209/10

Year 310/11

17 4/5 £19683 £20224 £20710 £21176

18 4/5 £20261 £20818 £21318 £21797

19 5 £20801 £21373 £22152 £22663

20 5 £21494 £22805 £23019 £23563

21 5 £22187 £22797 £23344 £24554

22 5 £22823 £23451 £24013 £25471

23 5/6 £23458 £24103 £24831 £26483

24 5/6 £24383 £25054 £25829 £27534

25 5/6 £25424 £26123 £26839

Growth on pay points over 3 years

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And more …..

Talks within 3 year period on reduction in pay points on long bands starting with 6 and 7

Future talks on reducing hours of the working week TU facilities agreement New initiative on work/life balance and well being at

work Re-opener clause for yrs 2 & 3 if significant change to

R&R or inflation

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If accepted

Payment probably in June Pay stability for 3 years Discussion with RB on continuing role Talks on further restructuring Talks on working week linked to productivity RCN will submit evidence to RB If necessary trigger re-opener

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If rejected Little possibility of improved offer – best in public

sector so far No further restructuring of long bands Yr 1 only – Government may react by staging TUs would need to be prepared to take industrial

action to fight for more Risk of fragmentation – devolved countries do their

own thing, staging leads to Foundation Trusts ‘doing their own thing’

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Visit www.rcn.org.uk/payproposals for more information.