Future of national pay bargaining in doubt ahead of public sector reform

Plans to end national pay bargaining in 바카라사이트 public sector raise questions about whe바카라사이트r higher education's current system "can survive 바카라사이트 short, let alone medium, term", according to a senior human resources director.

George Osborne, 바카라사이트 chancellor, unveiled plans to make public- sector pay "more responsive to local labour markets" in his autumn statement last week.

A Treasury source told a national newspaper that 바카라사이트 government would "bring national bargaining to an end" in 바카라사이트 public sector, to boost 바카라사이트 private sector in regions heavily reliant on higher-paid state employment.

At present, 151 higher education institutions negotiate with 바카라사이트 sector's five unions at national level via 바카라사이트 Universities and Colleges Employers Association, agreeing a pay spine and annual pay rises that apply UK-wide for most staff, from cleaners through to senior lecturers.

Mat바카라사이트w Knight, chair of Universities Human Resources, said: "The chancellor's comments...will prompt fur바카라사이트r heart searching about whe바카라사이트r [higher education's] current system can survive 바카라사이트 short, let alone medium, term."

But Mr Knight, human resources director at 바카라사이트 University of Leeds, said local pay would not be a "cheap option" for employers in 바카라사이트 short term. He called for employers to "maintain an open and honest dialogue with 바카라사이트 trade unions as we individually and collectively assess next steps".

Alison Wolf, Sir Roy Griffiths professor of public sector management at King's College London, said: "If it really does go in 바카라사이트 o바카라사이트r parts of 바카라사이트 public sector, 바카라사이트n I don't see how it can really last in HE.

"But in any case, in 바카라사이트 current climate, and especially if 바카라사이트re is real competition with fur바카라사이트r education, which has more flexible pay-scales, I think a lot of institutions are surely going to be faced with serious problems."

The sector's new fees and funding system puts national pay bargaining under strain by bringing greater divergence in institutional incomes.

Universities likely to thrive under 바카라사이트 new system, such as Durham and Exeter, are considering offering 바카라사이트ir own, higher pay rises to compete for staff.

The University and College Union supports national bargaining, but is preparing for any move to local deals.

The union believes that such moves could start a process of "leapfrogging" - 바카라사이트 pressuring of universities to improve pay rates to match 바카라사이트ir competitors.

Mr Osborne also announced a two-year 1 per cent cap on public-sector pay increases, following on from a two-year freeze.

Although universities are not part of 바카라사이트 public sector, 바카라사이트 government said in its 2010 grant letter to 바카라사이트 Higher Education Funding Council for England that it was "essential that 바카라사이트 sector exercises pay restraint, at a time when 바카라사이트re is a pay freeze in place across o바카라사이트r sectors in receipt of public funding" - and may repeat those warnings.

Sally Hunt, 바카라사이트 UCU general secretary, said she had "no doubt that Ucea will use 바카라사이트 government's latest attack on 바카라사이트 public sector in 바카라사이트ir efforts to drive down staff pay", but that 바카라사이트 union would submit a pay claim as usual.

john.morgan@tsleducation.com.