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

Selby Jennings: VP/SVP Credit Quant- NY- Investment Bank

Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...

Ashdown Group: Senior Marketing Executive- City of London, Old Street

£40000 - £43000 per annum + benefits: Ashdown Group: Senior Marketing Executiv...

Ashdown Group: Marketing Manager

£40000 - £43000 per annum + benefits: Ashdown Group: An international organisa...

Ashdown Group: Internal Recruiter -Rugby, Warwickshire

£25000 - £30000 per annum: Ashdown Group: Internal Recruiter -Rugby, Warwicksh...

Day In a Page

Read Next
 

Errors & Omissions: pours or pores, pulverised, ‘in preference for’ and lists

Guy Keleny
Ed Miliband created a crisis of confidence about himself within Labour when he forgot to mention the deficit in his party conference speech  

The political parties aren't all the same – which means 2015 will be a 'big-choice' election

Andrew Grice
Aren’t you glad you didn’t say that? The worst wince-and-look-away quotes of the year

Aren’t you glad you didn’t say that?

The worst wince-and-look-away quotes of the year
Hollande's vanity project is on a high-speed track to the middle of nowhere

Vanity project on a high-speed track to nowhere

France’s TGV network has become mired in controversy
Sports Quiz of the Year

Sports Quiz of the Year

So, how closely were you paying attention during 2014?
Alexander Armstrong on insulting Mary Berry, his love of 'Bargain Hunt', and life as a llama farmer

Alexander Armstrong on insulting Mary Berry and his love of 'Bargain Hunt'

From Armstrong and Miller to Pointless
Sanchez helps Gunners hold on after Giroud's moment of madness

Sanchez helps Gunners hold on

Olivier Giroud's moment of madness nearly costs them
A Christmas without hope: Fears grow in Gaza that the conflict with Israel will soon reignite

Christmas without hope

Gaza fears grow that conflict with Israel will soon reignite
After 150 years, you can finally visit the grisliest museum in the country

The 'Black Museum'

After 150 years, you can finally visit Britain's grisliest museum
No ho-ho-hos with Nick Frost's badass Santa

No ho-ho-hos with Nick Frost's badass Santa

Doctor Who Christmas Special TV review
Chilly Christmas: Swimmers take festive dip for charity

Chilly Christmas

Swimmers dive into freezing British waters for charity
Veterans' hostel 'overwhelmed by kindness' for festive dinner

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

Yazidi girls killing themselves to escape rape and imprisonment
Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

Ed Balls interview

'If I think about the deficit when I'm playing the piano, it all goes wrong'
He's behind you, dude!

US stars in UK panto

From David Hasselhoff to Jerry Hall
Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

Grace Dent's Christmas Quiz

What are you – a festive curmudgeon or top of the tree?
Nasa planning to build cloud cities in airships above Venus

Nasa planning to build cloud cities in airships above Venus

Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect