Economy experts call for end to pay bargain
TWENTY five top economists have called on the Government to end national pay bargaining and replace it with regionally-negotiated salary deals.
In a letter to The Times the leading academics — including three based in Cardiff — argued that national pay bargaining was bad for the British economy.
They claimed their idea would make "economic rebalancing in the regions much more likely to be successful".
They wrote: "National pay rates in the public sector means that public sector wages are out of line with local conditions in many parts of the country.
Business Cards From Only £10.95 Delivered www.myprint-247.co.ukView details
Our heavyweight cards have FREE UV silk coating, FREE next day delivery & VAT included. Choose from 1000's of pre-designed templates or upload your own artwork. Orders dispatched within 24hrs.
Terms: Visit our site for more products: Business Cards, Compliment Slips, Letterheads, Leaflets, Postcards, Posters & much more. All items are free next day delivery. www.myprint-247.co.uk
Contact: 01858 468192
Valid until: Friday, May 31 2013
"In some areas the public sector struggles to recruit staff because wages are too low.
"This worsens public services such as education and health in those areas.
"In other areas the private sector struggles to recruit, making it hard for private sector firms to survive and expand. Neither outcome is good for Britain.
"We need to overcome these issues without exacerbating regional inequalities. To that end we propose to keep the total public sector pay bill in each location the same, while allowing individual wage negotiations. Local wages would then be determined locally, with any savings used to enhance local services."
The letter comes a week after the Trades Union Congress voted in favour of a general strike over Chancellor George Osborne's proposals for regional public sector pay.