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TUC warns Chancellor over resurrecting plans for regional pay

The TUC has yesterday (Monday) warned George Osborne against resurrecting plans for regional pay in the public sector.

Reports say the Chancellor is considering announcing new local pay rates as part of Wednesday’s Budget.

The TUC has also expressed concerns that the Chancellor could seek to devolve powers for setting the minimum wage.

TUC General Secretary Frances O’Grady said:

“Regional pay is a race to the bottom that will drive down wages in parts of the country that are already experiencing slower growth.

“Apart from the obvious unfairness of paying a nurse in Gateshead less than one doing the same job in Gloucester, it would much make it harder for hospitals in poorer areas of the country to attract and retain good-quality staff.

“It is also a complete false economy. The public sector often sets the going rate for the private sector, and any moves to localise pay will serve only to reduce consumer spending and hurt businesses.

“Breaking up the national minimum wage would carry similar risks, leaving workers in many parts of the country facing poorer pay in depressed local economies.

“Regional pay-setting is not the way to deliver decent wages – a government that is genuinely committed to delivering fair pay would introduce far stronger national rises in the minimum wage and support extending collective bargaining across the UK.”

NOTES TO EDITORS:

  • All TUC press releases can be found at www.tuc.org.uk
  • Follow the TUC on Twitter: @tucnews

Contacts:

Media enquiries:

Alex Rossiter  T: 020 7467 1285  M: 07887 572130  E: arossiter@tuc.org.uk
Tim Nichols  T: 020 7467 1288  M: 07876 452902  E: tnichols@tuc.org.uk
Clare Santry  T: 020 7467 1372  M: 07717 531150  E: csantry@tuc.org.uk
Elly Gibson (Mon to Wed)  T: 020 7467 1337  M: 07900 910624  E: egibson@tuc.org.uk
Kay Atwal (Thur and Fri)  T: 020 7467 1385  M: 07941 547469  E: katwal@tuc.org.uk

 

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