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Inflation Starts With Public Sector Wages

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http://www.thisismoney.co.uk/news/article.html?in_article_id=506351&in_page_id=2

Unions reject BBC 1% pay deal and call for 7.3%

By This is Money & Mail reporters

16 June 2010, 8:44am

The BBC's 1.2%-plus pay rises for lower-paid staff has been rejected by broadcasting unions who are calling for a 7.3% rise for staff.

They added that they would not settle for anything less than a 2% rise, which would mirror next year's licence fee increase.

Strikes could follow if the BBC does not capitulate. It could potentially mean an extra £11m of licence payers' money is used for staff pay rises at a time when the rest of the country is facing stark cuts.

Bectu's general secretary Gerry Morrissey, said that he 'could not consider' the offer, which was 'totally unacceptable'.

'This claim is about rank and file BBC staff, not senior executives or on screen talent who can command six figure salaries,' he said.

'For several years now BBC staff across the country have taken on increased workloads as thousands of jobs have been lost. In spite of this, staff strive to innovate and to deliver quality output with fewer staff.'

The BBC has offered a flat rate increase of £475 to all staff earning less than £37,726 per year - around 12,000 or 70% of staff. The flat rate, says Bectu, is equivalent to an increase of 1.2% for staff paid at the upper limit. Those on more than £37,726 would see pay frozen.

Millions of private sector workers across the country have seen their salaries frozen or slashed, or have lost their jobs, as the nation struggles to recover from the worst recession since the 1930s.

Chancellor George Osborne has vowed to enforce a pay freeze on all public sector workers earning more than £18,000 to help slash the nation's £155bn deficit.

But in stark contrast to the policy proclaimed by the coalition Government, which has repeatedly warned that the public sector has to move from an 'age of plenty' to an 'age of austerity', the BBC is adding millions to its wage bill.

It is understood that the plan will cost an extra £6m of licence fee payers' money - a jump of 1% on the amount the broadcaster spends on pay.

More than £1bn is already spent annually by the corporation on wages.

In an email to all staff sent over the weekend, the head of BBC People, Lucy Adams, who is paid £320,000, said: 'The pay offer will benefit almost 70% of our staff and our aim has been to direct the available funds to those staff who earn the least.'

Mr Osborne's plan to freeze pubic sector pay is likely to be implemented next week in Tuesday's Budget.

The Government's only influence-on the BBC's spending was through the 2006 renewal of its charter which set the level of the licence fee - and its annual increase - for a six-year period.

But the corporation's day-to-day spending is independent from government, which means it does not have to follow the same rules as the rest of the public sector. The pay announcement comes at a time when the BBC is cutting budgets, programmes and services to save cash.

Thousands of staff have also lost their jobs to plug the funding shortfall, with the BBC having to save an estimated £1.7bn by 2014.

The unions expect an update from the BBC on 30 June.

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In an email to all staff sent over the weekend, the head of BBC People, Lucy Adams, who is paid £320,000,

Not bad for an HR officer in the public sector.

Do as I say, not as I do..............

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http://www.thisismoney.co.uk/news/article.html?in_article_id=506351&in_page_id=2

Unions reject BBC 1% pay deal and call for 7.3%

By This is Money & Mail reporters

16 June 2010, 8:44am

...let them go on strike and then close them down....and we can stop paying a 'licence fee' which is wasted by an non value for money broadcaster with bloated spend.... :rolleyes:

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...let them go on strike and then close them down....and we can stop paying a 'licence fee' which is wasted by an non value for money broadcaster with bloated spend.... :rolleyes:

There is a reason why the publci sector is highly paid.

It's because they'll physically injure you or burn your house down if you don't cough up.

There is no chance of them believing the money isn't there.

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Not bad for an HR officer in the public sector.

Do as I say, not as I do..............

Yep paid considerably more than nearly all her FTSE 100 (with all the problems that go with that!) equivalents and all from the tax/ licence payer..........................nice.

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...let them go on strike and then close them down....and we can stop paying a 'licence fee' which is wasted by an non value for money broadcaster with bloated spend.... :rolleyes:

THEY SHOULD ALL BE ON A PAY FREEZE AND THE HIGHER EARNERS OVER £60K SHOULD ALL TAKE A 5% CUT. THEN THEY SHOULD FREEZE THE LICENCE FEE FOR 2 YEARS. THEY SHOULD THINK THEMSELVES LUCKY THEY HAVE JOBS. IF THEY DON'T LIKE IT, TRY AND GET THE SAME IN THE PRIVATE SECTOR............NO? THOUGHT NOT. YOU CAN'T, THAT'S WHY!

However, they may go on strike, but I for one believe the BBC TV services are of an exceptional quality compared to any other around the world. I do think the UK should be proud of them and support them in any common sense way forward to ensure the BBC is preserved.

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Should public sector employees on less than the national average wage have no pay rise at all next year ?

Why ?

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There is a reason why the publci sector is highly paid.

It's because they'll physically injure you or burn your house down if you don't cough up.

There is no chance of them believing the money isn't there.

Exactly. I mean can you see Bob Crow as being anything else other than a Union steward or hired muscle?

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Our new license came through a few weeks ago, and I looked at the cost £145.50 and it made me pause. For the first time, it struck me that it was actually quite a lot of money.

£145.50 is the equivalent to a month's petrol or shopping for us; it is also more than our council tax monthly payment or a month's worth of our combined gas and electricity bill. No wonder, they are pushing people to pay by direct debit; it's so you don't notice just how much it really is.

Even though it is, what £12-something a month, it is more than our broadband costs. And I just thought ... what are we paying for here? We hardly watch TV at all, we don't listen to the radio, we don't use the BBC website, and we don't get any freeview/digital channels so it is only BBC1 and BBC2 anyway.

I am kinda unhappy about paying this kind of money really because I think it is just too much for what it is. And I realise I am basically paying for "talent" and BBC executives to make hundreds of thousands of pounds and live the life of Riley.

I am starting to feel, very keenly, that this is all a massive stitch-up of ordinary people so they fund the lifestyles of an elite clique. I worked out just how many households it took to pay for Ross's annual salary and it worked out as being equivalent to a large town (I think it was Mansfield). All those people paying a tithe so Johnathon Ross can live a lavish lifestyle; it just doesn't seem right at all.

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Unions reject BBC 1% pay deal and call for 7.3%

So the story is; Unions ask for more money. That's it right?

No one has actually been given a hyper inflationary holocaust pay rise have they.

In fact, one could say, that; Unions ask for more money, isn't really all that much of a story.

ffs, wake me up when something actually happens, would you.

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Those of us who actually deal with public sector pay see the NJC award. Public sector workers who get this have been getting, despite the unions putting in fairly modest and reasonable demands, pretty much sod all. That's what your front line staff are getting.

The BBC is just a bunch of self-serving thieves. £320k ffs.

Edited by Frank Hovis

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The BBC should switch to 'pay to view' - let them earn their money by the demand of customers. If people don't want their channels, why should they be charged the Telly Tax to view others?

The TV License is a throw back to a pre-digital, pre-satellite age, when pay to view was impossible. This is no longer the case and the way the BBC is funded needs reforming.

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The BBC should switch to 'pay to view' - let them earn their money by the demand of customers. If people don't want their channels, why should they be charged the Telly Tax to view others?

The TV License is a throw back to a pre-digital, pre-satellite age, when pay to view was impossible. This is no longer the case and the way the BBC is funded needs reforming.

They should. They should replace the license fee with a channel package fee that includes all TV and radio currently receivable in the UK on terrestrial channels. That way, they could get a LARGE cut of the digital distribution revenue - Sky and Virgin both need content afterall, otherwise all you've got is a pretty EPG and some slick advertising.

Just my little joke BTW - BBC / public sector. I assume people took it the way I intended it to be taken :ph34r:

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'Inflation starts with public sector wages - as it always has done'

I would respectfully describe this headline`as bollux. Inflation, as any economics text book will confirm, starts with increases in commodity prices.

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'Inflation starts with public sector wages - as it always has done'

I would respectfully describe this headline`as bollux. Inflation, as any economics text book will confirm, starts with increases in commodity prices.

You need a new textbook.

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There is a reason why the publci sector is highly paid.

It's because they'll physically injure you or burn your house down if you don't cough up.

There is no chance of them believing the money isn't there.

No, the reason is why public sector pay has been protected, is that they're insulated from the global wage arbitrage that’s driving down the private sector.

For how long though is anyone’s guess. Mind you if you’re on about the civil servants creaming six figure salaries and not the shop floor workers, then you may have a point.

Edited by PopGun

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