Pay review bodies (PRBs) should be reformed or scrapped, according to the Unite union, which described them as “long past their sell-by date” at the TUC congress in Liverpool.
Unite said its view was a direct result of workers in the public sector becoming “increasingly angry” with a succession of pay freezes and below-inflation pay increases recommended by PRBs.
The increasing resentment came to a head this year in the health sector, leading to strike action throughout the NHS.
PRBs are independent panels that collect evidence and then provide Westminster and devolved governments with advice on pay for public sector workers. The government ultimately decides the level of pay but PRBs are used to inform the decisions for approximately half of the public sector workforce, including health workers, teachers, the police, prison service and armed forces.
However, the true independence of the bodies was called into question at the TUC congress. David Agbley, a health worker and Unite member, said: “Take the example of the NHS. The pay body chair is handpicked by the prime minister and the seven members are chosen by the health minister. The government rigs the rules by setting strict levels that the body must base its decision on before the process has even kicked off.”
Unite general secretary Sharon Graham described PRBs as “less than useless”, adding: “If they can’t be reformed to become genuinely independent of government they must be scrapped and replaced with genuine pay negotiations.”
However, Charles Cotton, senior policy adviser for performance and reward, believes scrapping PRBs could do more harm than good in the long term.
Speaking to Benefits Expert, Cotton said: “While pay review bodies have recently come under criticism, there’s been little proposed on what could replace them. There could be a return to collective bargaining, but there’s no evidence that this would deliver any better outcomes.”
He added: “The pay review bodies also commission independent labour market research, which could be lost.”
