Unions suspend industrial action to consider employers' proposals

Unions have agreed to suspend all industrial action involving public-sector workers while both sides review recommendations from employment relations experts.

The announcement yesterday by the Advisory, Conciliatory and Arbitration Service (Acas) that the strike planned for August 14 was to be suspended followed two days of talks. Representatives from Unison, the GMB and the Transport and General Workers' Union have been attempting to negotiate a settlement over a pay dispute.

The unions and local authority leaders agreed yesterday to review the recommendations, after meeting at Acas headquarters in London.

Council workers from various sectors – ranging from school meals staff to refuse collectors – walked out last month for 24 hours in the first national strike since the Winter of Discontent in 1979.

The unions have rejected the employers' offer of a 3 per cent wage increase for the 1.2 million public-sector employees in England, Wales and Northern Ireland. They are seeking a 6 per cent rise. Talks began at Acas on Friday between representatives from Unison, the GMB and the Transport and General Workers' Union and the employers' organisation, which was representing local authorities.

If the proposals are accepted by both sides, they could end the dispute. Under the proposals, council workers would receive the 3 per cent increase already on the table but also a new minimum rate of £5 an hour from 1 April 2002.

This would be followed by a 1 per cent increase from 1 October, and another 1 per cent rise for the two lowest pay grades.

From April next year, council workers would receive a 3.5 per cent pay rise and an additional 1 per cent for the lowest- paid sector.

This would mean that from April 2003, the lowest paid council workers will receive £5.32 an hour compared with the current £4.80.

Employers and unions are to consult their members on whether to accept the recommendations.

The consultation is likely to last six weeks and all industrial action has been suspended in the meantime.

A joint statement on behalf of the three unions said: "The Acas proposals are the result of many hours of tough negotiation.

"We believe that the proposals represent a fair deal for local government employees and a strong platform to end low pay and unequal pay. If they are accepted it will bring an end to this dispute."

Yesterday, Charles Nolda, executive director of the National Employers' Association, said: "We are very pleased to have got to this position today where the industrial action is suspended.

"It is a sensible compromise that both sides will now be recommending to their respective members.

"We think it is in the interests of local government, the public and our staff that this dispute is resolved."