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Far better to offer payment in other ways, that would not affect inflation as strongly, higher levels of mortgage tax relief for public sector workers, for instance. This would also ease the slow down in the housing market a little and help the police and medical staff who often have difficulty finding homes near to their places of work. Just an idea, but what do I know?
Steve, any suggestion that public sector employees need improved packages is misguided.
The discontent around pay or the police's right to strike need not be issues - it is time to educate this misguided greed. The public sector are already being treated more generously than the private sector - none more so than the police.
1/ Over 90% of the public sector enjoy gold plated pensions compared to 12% and falling of the private sector. Private sector employees also have to work a minimum of 5 years longer before 88% retire on means tested benefits.
http://www.sippsandssas.co.uk/newspapers/the-telegraph/
2/ The cost of the public sector gold plated pension is on average 38% of your public sector salary.
For police it is over 70%. If you are employed in the private sector
that is the proportion of your pay you would have to invest into a private sector money purchase pension to enjoy comparable benefits.
For the copper on £30k you and I are funding over £20k per annum for his cushy pension (yes Mr Copper I know you have to contribute 11% in superann, my heart bleeds, the rest of us pick up the remaining 59% - and he wants the right to strike!
http://www.iea.org.uk/record.jsp?type=release&ID=114
If you require the workings of why this is the case refer to the following pdf (page 44)
http://www.iea.org.uk/files/upld-book329pdf?.pdf
3/ Public sector pay has moved ahead of private sector pay (always a favourite throw away defense for gold plated benefits);
http://www.personneltoday.com/Articles/2005/11/11/32504/public-sector-continues-to-outdo-commercial-pay-rates.html
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Public sector stays ahead of commercial pay for fifth year running.
Public sector workers are earning more than their private sector colleagues, according to an annual survey by the Office for National Statistics (ONS).
The standard public sector employee earns almost £250 more each month, with an average weekly income of £475.10 (for the year to 30 April), compared with £413.10 for private sector workers.
Public sector wages were also found to be rising faster, with a 4.1% increase since last year, compared to 2.5% in commercial organisations.
One in five workers are employed by the public sector, which recruited an additional 95,000 employees in the UK last year.
David Willetts, shadow trade and industry secretary, claimed the figures revealed confusion in government policy.
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"The government says the public sector gets better pensions in compensation for lower pay. Today's evidence shows it now gets better pensions and better pay," he said.
The pay gap between the two sectors has grown steadily over the past five years.
Gordon Brown is guilty of creating an unfair society of haves and have nots. He is also not a stupid man. He is aware of the facts just as I and you are. What does this make him? What does it say about the unions and public sector workers in general?
Let's not forget all these gold plated pension promises have a liability of £1,000 billion. (ie £1 trillion = a million millions)
http://www.thisismoney.co.uk/retirement/article.html?in_article_id=407513&in_page_id=6
They also take more duvet days at your expense;
http://www.personneltoday.com/Articles/2006/07/17/36403/public-sector-absence-25-higher-than-private-sector.html
They also like to retire even before their already lower normal retirement date;
http://www.personneltoday.com/Articles/2006/07/17/36403/public-sector-absence-25-higher-than-private-sector.html
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Perhaps the biggest scandal in these schemes is the level of ill-health retirement. Members who retire due to ill health receive an enhanced pension paid from the age at which the ill health retirement takes place. Nearly a quarter of all teachers, civil servants and NHS workers retire due to ill health. This rises to 40% of all local government workers,
50% of police and over two-thirds of firemen. Again, the
taxpayer picks up the bill. It is simply not credible that our policemen and local government officers are this unhealthy. The problem is with the governance of these schemes. Easing an employee out, using the pretext of health problem such as stress, is an easy way of dealing with difficult situations for management, because public sector employers, such as individual hospitals and schools, do not bear the cost of their decisions. Alternatively, it could be argued that public sector employers do not put sufficient effort into managing and nurturing the health of their employees because they know that generous severance terms are available for them and employers themselves do not pick up the cost of these generous severance terms.
They also like to pay less National Insurance than you and I;
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/05/14/cmserps14.xml
I could go on but the police need educated on the value of the package they currently enjoy.
Any pay increase would need to be tempered by a reduction of their staggering pension provision. If I were a copper I'd think twice about taking illadvised action. Once the general public are availed of the facts you will have no sympathy.