PUBLIC SECTOR
CIPD manifesto calls for a freeze of public sector pay bill
There must be an immediate freeze on the public sector pay bill for all non-military employees in 2010, according to the Chartered Institute of Personnel and Development. The CIPD reckons that freezing the pay bill rather than pay awards would offer public sector employers some flexibility in meeting particular recruitment and retention pressures, while encouraging moderation by highlighting the impact of pay awards on employment levels.
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The call is contained in "Platform 2010: A recovery that works", the CIPD’s pre-election “manifesto for work”.
Other calls include:
The national minimum wage for younger workers should be frozen in absolute terms in 2010 to ensure “welcome government efforts to combat soaring youth unemployment are not fatally undermined just as the economy is beginning to recover”.
Abandon the increase in employers’ national insurance contributions planned for 2011.
Remove the default retirement age and extend the right to request flexible working to all employees from 2013.
Lead a national awareness campaign on the importance of good people management skills among line managers.
John Philpott, chief economic adviser, CIPD, said: “The call for a freeze in the minimum wage for younger workers recognises the efforts that have already been made by government and employers to tackle youth unemployment, but also takes into account expectations of a slow and weak recovery in the labour market.”
A final word
“We strongly welcome the steps the government has taken to avoid the creation of a ‘lost generation’ in the UK. But freezing the national minimum wage for younger workers is necessary to ensure that all this good work is not fatally undermined just as the economy begins to recover. Pay restraint is likely to be a feature of the year ahead as employers and employees continue to work together to minimise job losses. It is right that younger workers lucky enough to have jobs should play their collective part in helping maximise the chances for those who do not.” - John Philpott, chief economic adviser, CIPD.
Want to know more?
Title: Platform 2010: A recovery that works, Chartered Institute of Personnel and Development, January 2010.
Availability: For a copy of the manifesto in PDF format, visit www.cipd.co.uk/platform2010.
The Chartered Institute of Personnel and Development (CIPD) is “Europe’s largest HR and development professional body with over 135,000 members, supporting and developing those responsible for the management and development of people within organisations”. For more details visit www.cipd.co.uk.