Local pay negotiations are not about union breaking

Share
THE TREND of devolution in pay bargaining is by no means as universal as Paul Routledge suggests ("Goodbye to all that", 30 July). In fact in the private sector there is evidence that it is actually being reversed, as companies experience some of the disadvantages of local pay deals - lack of expertise and resources to manage pay locally, pay "leap-frogging", and blockages to lateral career development. BP, Philips and Shell UK have re-centralised aspects of pay determination in recent years. This view is supported by a Warwick University study into the private sector which found that the continuance of centralised payroll budgeting "significantly limits any apparent decentralisation of decision-making on pay".

Nor is it the case that the move to local pay has the objective of "diminishing the strength of the unions and driving down wages". From a historical perspective, the creation of national bargaining structures often reflected the desire to end the anarchic situation of numerous local disputes and strikes. The figures quoted on the fall of employee numbers covered by collective bargaining reflect much broader trends - the decline of traditional industries where unions are strong and the growth of the service sector and part-time jobs.

Evidence suggests the move to local pay bargaining tends to increase pay costs. National pay determination can be inflexible to local market needs, but it makes centralised control much easier. Pay administration costs also invariably increase.

The key to sensible pay determination in many large public and private sector organisations is often to find an appropriate balance between a central framework and co-ordination of pay policies, and local flexibility to reflect varying market, business and employee needs. Scare-mongering as to hidden agendas of pay cuts and union de-recognition achieves nothing.

Duncan Brown

Towers Perrin, London WC1

React Now

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
iJobs Job Widget
iJobs General

English Teacher

£110 - £130 per day + Pay between ?110 - ?130 Day: Randstad Education Cardiff:...

SAP Deployment Manager

£480 per day + competitive: Progressive Recruitment: SAP Deployment Manager-Ta...

Microsoft Dynamics CRM Consultant

£50000 per annum + benefits: Progressive Recruitment: Urgently seeking a Dynam...

Test Lead - Financial Reporting - Banking - London

£350 - £400 per day: Orgtel: Test Lead, London, Banking, Financial Reporting, ...

Day In a Page

Read Next
 

Are we politely looking the other way when it comes to Kate, the ever-shrinking Duchess?

Grace Dent
 

The daily catch-up: art of the unapology, a bet on UKIP and printer ink molecules

John Rentoul
Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

Screwing your way to the top?

Good for Lana Del Rey for helping kill that myth, says Grace Dent
Will the young Britons fighting in Syria be allowed to return home and resume their lives?

Will Britons fighting in Syria be able to resume their lives?

Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

Beyoncé poses as Rosie the Riveter

The wartime poster girl became the ultimate American symbol of female empowerment
The quest to find the perfect pair of earphones: Are custom, 3D printed earbuds the solution?

The quest to find the perfect pair of earphones

Earphones don't fit properly, offer mediocre audio quality and can even be painful. So the quest to design the perfect pair is music to Seth Stevenson's ears
US Army's shooting star: Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform

Meet the US Army's shooting star

Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform
Climate change threatens to make the antarctic fur seal extinct

Take a good look while you can

How climate change could wipe out this seal
Should emergency hospital weddings be made easier for the terminally ill?

Farewell, my lovely

Should emergency hospital weddings be made easier?
Man Booker Prize 2014 longlist: Crowdfunded novel nominated for first time

Crowdfunded novel nominated for Booker Prize

Paul Kingsnorth's 'The Wake' is in contention for the prestigious award
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned

Vladimir Putin employs a full-time food taster

John Walsh salutes those brave souls who have, throughout history, put their knives on the line
Tour de France effect brings Hollywood blockbusters to Yorkshire

Tour de France effect brings Hollywood blockbusters to Yorkshire

A $25m thriller starring Sam Worthington to be made in God's Own Country
Will The Minerva Project - the first 'elite' American university to be launched in a century - change the face of higher learning?

Will The Minerva Project change the face of higher learning?

The university has no lecture halls, no debating societies, no sports teams and no fraternities. Instead, the 33 students who have made the cut at Minerva, will travel the world and change the face of higher learning
The 10 best pedicure products

Feet treat: 10 best pedicure products

Bags packed and all prepped for holidays, but feet in a state? Get them flip-flop-ready with our pick of the items for a DIY treatment
Commonwealth Games 2014: Great Scots! Planes and pipers welcome in Glasgow's Games

Commonwealth Games 2014

Great Scots! Planes and pipers welcome in Glasgow's Games
Jack Pitt-Brooke: Manchester City and Patrick Vieira make the right stand on racism

Jack Pitt-Brooke

Manchester City and Patrick Vieira make the right stand on racism
How Terry Newton tragedy made iron men seek help to tackle their psychological demons

How Newton tragedy made iron men seek help to tackle their psychological demons

Over a hundred rugby league players have contacted clinic to deal with mental challenges of game