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zugzwang

No Inflation Busting Pay-Rises For Public Sector Workers Until 2018

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They certainly hope to have the books balanced by 2018. :lol:

Four more years of austerity financial repression ahoy.


Public sector workers will not get an above-inflation pay rise for another four years, it emerged today as unions prepare a huge strike over pay and pensions.

Conservative minister Matthew Hancock suggested pay restraint would have to continue until the government has ‘the books balanced’ in 2018.

Up to 1million teachers, council workers, health workers, firefighters and civil servants will walkout across England and Wales on Thursday.


Mr Hancock, a skills minister, told BBC On'es Sunday politics inflation would continue to outstrip wages for taxpayer-funded jobs for another four years.

Asked if public sector workers would ever get a real increase in their pay under a Conservative government, Mr Hancock replied: ‘Well, we certainly hope to have the books balanced by 2018.

He added: ‘I don’t think it is the right time to let go of the public finances at all.

‘We were always clear that this is what’s called a structural deficit; it doesn’t go away just because growth is returning and the economy’s coming back.

‘We have protected and are protecting the lowest-paid public sector workers who weren’t part of the pay freeze, now pay going up by 1 per cent.

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They certainly hope to have the books balanced by 2018. :lol:

Four more years of austerity financial repression ahoy.

This should be in the you know what thread.

govt seems desperate for private sector wage inflation first as a boost to gdp so govt can ease open the taps for more debt.

Except they're (private sector) not playing ball :lol:

Why would you increase wages if your main competitor for labour, the public sector, had publicly denounced the idea of wage increases?

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It isn't looking good for the next spending review period. We don't know what department budget will look like But this note suggests a hint atleast to me that the settlements will be tight.

I did post that I would not expect increases for years in public sector wages but remember that most move through the band structures. Also reorganisations and job regrading. Especially if an increase in outsourcing those left in public sector may upward regrade.

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This should be in the you know what thread.

govt seems desperate for private sector wage inflation first as a boost to gdp so govt can ease open the taps for more debt.

Except they're (private sector) not playing ball :lol:

Why would you increase wages if your main competitor for labour, the public sector, had publicly denounced the idea of wage increases?

Only 1 in 5 workers are public sector. The main competitor for labour if you are a private sector company is other private sector companies.

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Only 1 in 5 workers are public sector. The main competitor for labour if you are a private sector company is other private sector companies.

Only 1 in 5 workers are public sector. The main competitor for labour if you are a private sector company is other private sector companies.

I'm not sure about that. Maybe 1 in 5 of the working age population.

As far as people in full-time work i.e not unemployed or tax credits, I would guess somewhere between 30% and 60%, depending on the location.

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What about all the private firms and individuals that earn their living from the public sector, the many consultants for example?

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It isn't looking good for the next spending review period. We don't know what department budget will look like But this note suggests a hint atleast to me that the settlements will be tight.

I did post that I would not expect increases for years in public sector wages but remember that most move through the band structures. Also reorganisations and job regrading. Especially if an increase in outsourcing those left in public sector may upward regrade.

Yep it's completely unsustainable. Automatic increments is a pay rise.

It would be interesting to know what percentage of budget cuts is due to wage increases.

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I think the croissants at the demos and the handy day off out with the family kind of gives the game away about the financial hardship in the public sector right now

Diddums

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Sorry I'm confused - I'm supposed to be upset that public sector worker who unlike private sector workers have largely been insulated from the economic effects of the last 4-5 years through their index linked final salary pensions, are not getting pay rises ?.

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What about all the private firms and individuals that earn their living from the public sector, the many consultants for example?

Yes. you'll get a Soviet type percentage if you extend the definition to 'households that derive 50% or more of their income from the state'

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Sorry I'm confused - I'm supposed to be upset that public sector worker who unlike private sector workers have largely been insulated from the economic effects of the last 4-5 years through their index linked final salary pensions, are not getting pay rises ?.

Sorry I'm not clear how present workers have been "largely been insulated from the economic effects of the last 4-5 years" by having index linked final salary pensions not presently in payment.

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Sorry I'm confused - I'm supposed to be upset that public sector worker who unlike private sector workers have largely been insulated from the economic effects of the last 4-5 years through their index linked final salary pensions, are not getting pay rises ?.

Indeed

They're making the government's job easier by undermining public sympathy like this

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Sorry I'm not clear how present workers have been "largely been insulated from the economic effects of the last 4-5 years" by having index linked final salary pensions not presently in payment.

Entirely supporting my point

Do shut up

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White Craw, on 07 Jul 2014 - 08:08 AM, said:snapback.png

Sorry I'm not clear how present workers have been "largely been insulated from the economic effects of the last 4-5 years" by having index linked final salary pensions not presently in payment.

Entirely supporting my point

Do shut up

Still not clear about the logic of connecting the points above and haven't been enlightened by your contribution.

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White Craw, on 07 Jul 2014 - 08:08 AM, said:snapback.png

Still not clear about the logic of connecting the points above and haven't been enlightened by your contribution.

Your sarcasm and superior tone does you no favours

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Only 1 in 5 workers are public sector. The main competitor for labour if you are a private sector company is other private sector companies.

It's not a public vs private issue.

It's the stupid politicos trying to Grandstand their supporters despite the obvious consequences.

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Your sarcasm and superior tone does you no favours

You are either drunk or in need of help.

Post after post of vitriol, no contributions of note for weeks.

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You are either drunk or in need of help.

Post after post of vitriol, no contributions of note for weeks.

That from Willy waving public sector ponzi man does little to make me self analyze

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It's not a public vs private issue.

It's the stupid politicos trying to Grandstand their supporters despite the obvious consequences.

Indeed - falling for divide and conquer :blink:

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Indeed - falling for divide and conquer :blink:

Not really, when we've a huge unaffordable public sector that is there for the benefit of itself its hardly a case of people falling for the divide and conquer.

Public sector workers won the lottery under Labour its time they had their wages cut as what would happpen if the govt werent borrowing or printing hundreds of billions a year.

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I can see the strike having a negative impact on GDP and CPI, pushing us closer to deflation. Not much actual productivity will be lost other than some private sector workers having to take time off; however, will definitely have a knock on effect with public sector workers spending less presumably.

PSBR should be assisted, but that's the point it will still be a massive deficit even with the savings made on strikers' wages. We all want jam today on the grandkids' future earnings because we are all selfish. Benefits and public sector wages in excess of taxation is what we expect, it's the post world war two deal where we assume future generations will have fatter wallets.

Edited by crashmonitor

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