States “cannot afford” to raid coffers to solve pay row

Wednesday 05 December 2018

Raiding millions from the States’ reserve money pot to resolve the ongoing pay row would “open the floodgates to a wave of historical pay claims” that Jersey cannot afford, the Chief Minister has warned.

His comments came in response to calls from the island’s biggest civil service union, JCSA Prospect, to use £51million from government savings and surpluses to bring public sector workers’ wages back in step with the cost of living on the island.

To enable that, Deputy Geoff Southern has brought proposals before the States arguing that the States’ budgeting system should be changed to allow this money to be accessed. They are set to be voted on this week.

But, just days ahead of a public sector strike, the Chief Minister has now published a detailed rebuttal of why the government believes that plan will not work.

Pictured: Deputy Geoff Southern has brought proposals, which will be voted on this week, to use States reserves to resolve the pay row.

With the previous Council of Ministers having failed to deliver on funding measures worth millions, Senator John Le Fondré explained that the government is now in a vulnerable position, predicting a funding shortfall of up to £40million.

He added that keeping States’ workers pay in step with inflation as unions have requested would require an extra £9million each year, deepening the deficit.

“The current staff pay bill of £359 million a year already accounts for nearly half of the States’ annual budget. Forecasts for 2020 show deficits of £30–£40 million, in part because of the failure by the previous Assembly to deliver on measures within the current Medium Term Financial Plan. Paying all staff in line with the Retail Prices Index would add more than £9 million a year, forever, to pay costs, and would further increase the forecast deficit,” he said.

Senator Le Fondré further warned that dipping into reserves may “unlock a raft of current and historical pay claims, which would take these costs to unknowable levels”, adding: “This proposal threatens the very sustainability of States finances and is simply not affordable – because we cannot fund ongoing increases in revenue expenditure from our reserves.”

He also stated that funding problems could lead to the States not being able to finance priorities they have committed to, such as “putting children first”. 

Pictured: The pay row has led States workers to strike this Friday.

The comments come as the pay row continues to intensify.

Hundreds of civil servants are currently working ‘to rule’ – a form of industrial action that means they do the minimum that they are contracted to do, starting and finishing work at contracted hours and taking all breaks – to demonstrate how their goodwill powers the States.

This Friday will also see the first planned strike, with members of civil service unions JCSA Prospect and Unite the Union refusing to work between 09:00 and 11:00.

With some workers within education falling under the civil servant pay bracket, some schools are set to feel the impact. Already, plans have been made for some to open later in the day.

A letter from Grands Vaux Head Teacher Maria McCool to parents stated that the school will not be able to operate within health and safety ratios due to the strike action. 

Pictured: Some schools will have to open later on Friday due to the strike action.

She wrote: “It is expected that a significant number of support staff will be supporting their union in taking strike action. As a result of the risk assessment I have undertaken, I have to inform you that the school will have a late opening on Friday 7^thDecember. We will not be able to open at our usual time; school will open at 11am on Friday 7^th December 2018.

“I apologise for the need to change our normal arrangements and for any inconvenience cause to you by this… We must all hope that the issues over which the industrial action has arisen are resolved as soon as possible.” 

Grouville and St. John are also among the primary schools to have advised that they will be affected, with nurseries set to open at the later time of 11:00. Children’s break times at the latter will also be delayed to 11:00 “when we have more qualified first aid staff back on site”. 

Numerous secondary schools have also taken the decision to delay their openings, closing to Years 7 and/or 8 until 11:00.

JCG and Victoria College, meanwhile, have advised that they will not be affected.

A spokesperson for the States of Jersey commented that it was “important” for parents and carers to update themselves as to the arrangement at their children’s schools. States officials said that the Head of the Department of Children, Young People, Education and Skills was working closely with schools on contingency plans.

They commented: “Schools and the Department are committed to doing everything they possibly can to avoid the interruption of the learning for children and young people, but the main priority is for their safety at school.

“While schools will do everything they possibly can to stay fully open, the right of those who wish to go on strike is acknowledged.”