Thursday, 10 July 2014

Public Sector - Striking the right balance


Four years ago I predicted that the Public Sector would screw up the recovery (see No Joke, We're Broke). In this prediction I looked back on the great recession during Labour's last sorry days of Government and how public sector employees were almost completely unaffected. During the recession businesses felt the squeeze and many didn't survive. Of the ones that did survive they did so with the support of their workforce taking shorter hours, 4 day weeks, temporary lay offs. They did what they could to make sure there was still a job after the recession. As I predicted the sorry state of Labour's great recession has caught up with the public sector. Imagine for a second if the likes of Unison, Unite, GMB, etc. were to encourage their members to take the private sector approach and accept that, like a prudent business, the Government has to take unpalatable measure to stay afloat. As if suffering from acute amnesia they forget that the lowest paid workers have been taken completely out of taxation, they forget that Labour scrapped the 10% tax rate and this Government not only restored it but restored it at 0%. They forget that public sector pay has risen by 17.7% since 2007 compared to 13.4% in the private sector. They forget that Public Sector workers still enjoy better job security, final salary pension schemes, very generous sick pay arrangements, pay scale increments regardless of performance. During the public sector strike in 2012 I vented to my colleagues the benefits of public sector employment, even after reforms. Quite rightly they asked me "So why did you leave?"... Not easy to answer

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