Public and private sector terms, conditions and the issue of fairness
Sunday, 05 June 2011
Synopsis
The next four years will see significant changes in the remuneration, terms and conditions of workers in both the public and private sectors.
This note examines the evolution of pay and conditions during 2010 and what the prospects are for these moving forward. It shows that public sector pay is higher and continued to grow faster than private sector pay during 2010 and that significant reforms will need to be made to limit job losses in the public sector and to achieve equity and fairness in the labour market.
Related Staff
Ed Holmes
Senior Research Fellow for Economics & Social Policy
Matthew Oakley
Head of Economics & Social Policy
Related Events
(Conservative Party Conference) Pensions reform: The impact on intergenerational fairness04 October 2011
With Ed Holmes, Harriett Baldwin MP, Katja Hall (CBI), Joanne Segars (NAPF) and Neil Record (Record Currency Management).
Related News
Public sector workers paid more, official figures show13 September 2011
The Daily Telegraph quotes Policy Exchange Economics Research Fellow Ed Holmes discussing findings from report Public and private sector terms, conditions and the issue of fairness that there is a significant pay disparity between the public and private sectors which desperately needs to be tackled.
State workers are paid 8% more06 July 2011
The Sun quotes Matt Oakley, Head of Enterprise, Growth and Social Policy at Policy Exchange, commenting that it is unfair that private sector workers are seeing a big drop in living standards and that some public sector workers are facing redundancy because of the size of the public sector paybill.
Public Staff Paid 8% More Than Private06 July 2011
Matt Oakley, Head of Enterprise, Growth and Social Policy at Policy Exchange, is quoted in The Daily Express commenting how close ONS figures on public sector pay are to those previously published in report Public and private sector terms, conditions and the issue of fairness.
Private-public pay gap widens05 July 2011
The Local Government Chronicle refers to Policy Exchange report Public and private sector terms, conditions and the issue of fairness and its findings that public sector workers enjoy a significant pay premium over their private sector counterparts.
Dominic Lawson: Teachers and nurses brandish a fake halo03 July 2011
Sunday Times columnist Domic Lawson cites findings from Policy Exchange report Public and private sector terms, conditions and the issue of fairness that public sector workers receive a significant pay premium over their private sector counterparts.
Ed Holmes on Radio Five Live02 July 2011
Ed Holmes, Economic Research Fellow at Policy Exchange, is interviewed on BBC Radio Five Live arguing that figures showing private sector wages rising whilst public sector wages are frozen represent a modest movement towards the pay gap returning to a fair level.
Public sector pensions: What is fair?30 June 2011
Policy Exchange's Head of Enterprise, Growth and Social Policy, Matt Oakley, takes part in a head-to-head debate in The Guardian arguing that current public sector pension schemes are unaffordable, quoting report Public and private sector terms, conditions and the issue of fairness which shows that in addition to their superior pensions, public sector workers also have superior pay and conditions.
Reform of teachers' pensions is fair. Unsurprisingly, the ultra-Left don't see it that way28 June 2011
Policy Exchange Director Neil O'Brien writes on his Telegraph blog putting the case for public sector pensions reform, citing findings from report Public and private sector terms, conditions and the issue of fairness that the public sector enjoys superior pensions to the private sector on top of better pay.
Opinion: The progressive case for aligning pension ages across the public and private sectors21 June 2011
Liberal Democrat voice cites findings from Policy Exchange report Public and private sector terms, conditions and the issue of fairness that public sector pay is higher than in the private sector.
Dominic Lawson: Pension cuts or ruin - your choice, unions19 June 2011
Writing in The Sunday Times, Dominic Lawson quotes findings from Policy Exchange report Public and private sector terms, conditions and the issue of fairness that the value of public sector pensions vastly increases the pay premium the public sector enjoys over the private sector.
Ed Holmes on BBC Radio Somerset15 June 2011
Policy Exchange Economics Research Fellow Ed Holmes is interviewed on BBC Radio Somerset on the issue of public and private sector pay and conditions, a topic we covered in report Public and private sector terms, conditions and the issue of fairness.
Take this test to find out if you're a Tory15 June 2011
The Times cites findings from Policy Exchange report Public and private sector terms, conditions and the issue of fairness that there is a significant pay premium for those working in the public sector over there private sector counterparts.
Think tank attacks public sector pay09 June 2011
Public Service reports on latest Policy Exchange publication Public and private sector terms, conditions and the issue of fairness, quoting Director Neil O'Brien criticising the gap between public and private sector pay as unfair.
Vince Cable dances with the unions06 June 2011
Policy Exchange Economics Research Fellow Ed Holmes writes on The Spectator's Coffee House blog arguing the case from report Modernising Industrial Relations that it is no longer appropriate to give extraordinary legal exemptions to trade union organisations that represent only a small segment of the workforce.
Moving towards more efficient public sector pay03 June 2011
Matt Oakley, Head of Enterprise, Growth and Social Policy, writes on The Spectator's Coffee House blog defending report Public and private sector terms, conditions and the issue of fairness and reiterating the report's recommendation that public sector pay be frozen in order to save jobs.
Unions apply pressure on pay and pensions17 May 2011
The Nursing Times reports findings from Policy Exchange report Public and private sector terms, conditions and the issue of fairness that public sector works receive a substantial pay premium over the private sector counterparts.
Public sector pay: why Policy Exchange got it right, by Matt Oakley13 May 2011
Policy Exchange's Head of Enterprise, Growth and Social Policy, Matt Oakley, writes on Public Finance's blog defending recent report Public and private sector terms, conditions and the issue of fairness from critics who have focused on only one figure from the report on the size of the public sector 'pay premium' and have failed to note that, in fact, the report offers a range of estimates for this figure.
Pay reform the key to sharing Britain’s pain 12 May 2011
Ed Holmes, Economics Research Fellow and co-author of Policy Exchange's latest report Public and private sector terms, conditions and the issue of fairness explains findings from the report in an op-ed for The Yorkshire Post.
Public sector workers are overpaid - and here's why the TUC should help tackle it10 May 2011
Policy Exchange Director Neil O'Brien writes in his Telegraph blog explaining how the figures from report Public and private sector terms, conditions and the issue of fairness were reached and why he believes the trade unions are wrong not to argue for controlling public sector pay in order to protect public sector jobs.
Pay gap grows between public and private sector09 May 2011
Personnel Today cover Public and private sector terms, conditions and the issue of fairness, Policy Exchange's latest report, quoting Director Neil O'Brien criticising revelations from the report that public sector pay is significantly higher than in the equivalent jobs in the private sector equivalent as evidence that the public sector paybill is "out of control".
Public sector pay rises still beating private sector09 May 2011
Public Finance magazine reports findings from Policy Exchange report Public and private sector terms, conditions and the issue of fairness that the gap between public and private sector pay was still rising as late as December 2010 despite public sector pay freezes. They quote Director Neil O'Brien condemning the public paybill as "out of control".
Public deals outstripping private, Policy Exchange09 May 2011
Public and private sector terms, conditions and the issue of fairness, Policy Exchange's latest report, is covered by the Local Government Chronicle who quote Director Neil O'Brien calling on unions to recognise findings from the report that public sector pay levels are unsustainably high and that jobs will be lost unless they are willing to give ground over pay.
Public sector pay outstrips private sector, says think tank09 May 2011
"Neil O’Brien, director of the think tank, said: “Public sector pay has got hugely out of control. There is pressure on budgets like never before because of the deficit. If the unions want to preserve their members’ jobs they have to realise that pay is an issue which will have to be looked at. “It is unfair to expect private sector workers to make all the sacrifices”." See the full article on People Management's website
Study finds public sector pay gap increasing09 May 2011
LocalGov.co.uk quotes Policy Exchange Director Neil O'Brien describing the pay gap between public and private sector workers as "unfair" after report Public and private sector terms, conditions and the issue of fairness revealed public sector workers earn up to 35% more than their private sector counterparts.
Neil O'Brien on Five Live09 May 2011
Policy Exchange Director Neil O'Brien appears on BBC Radio 5 Live to discuss findings from report Public and private sector terms, conditions and the issue of fairness that public sector workers earn significantly more than their private sector counterparts.
Public sector pay gap 'widening'09 May 2011
The Mirror reports on Public and private sector terms, conditions and the issue of fairness, Policy Exchange's latest report, which finds that the public/private sector pay gap continued to increase until December 2010 in spite of pay freezes and quote Director Neil O'Brien calling for public sector pay to be brought under control in order to tackle the deficit and preserve jobs.
Public sector pay gap continues to widen09 May 2011
The Independent reports on revelations from Policy Exchange report Public and private sector terms, conditions and the issue of fairness that, worked out hourly, public sector workers earn 35% more than their private sector counterparts. Director Neil O'Brien is quoted calling for local pay bargaining to help bring the disparity and the overall paybill under control.
The Today Programme reports on Public and private sector terms, conditions and the issue of fairness09 May 2011
The Today Programme reports on Policy Exchange report Public and private sector terms, conditions and the issue of fairness which found that, despite a public sector pay freeze, public sector workers still receive significantly more pay than their private sector counterparts.
Cutting the public sector payroll09 May 2011
The Daily Telegraph reports suggestions from Policy Exchange report Public and private sector terms, conditions and the issue of fairness that local pay bargaining (and an end to national strike ballots); the replacement of the current two-year salary freeze with a freeze on the total pay bill, and phasing out index-linked, final salary pensions be used to pring the public sector paybill under control.
Public Workers' Pay Boost09 May 2011
The Daily Star reports on the finding from Policy Exchange publication Public and private sector terms, conditions and the issue of fairness that the gap between public and private sector pay increased, in spite of pay freezes, all the way up until December 2010.
Public sector freeze...but pay still rises09 May 2011
The Daily Express reports findings from Policy Exchange report Public and private sector terms, conditions and the issue of fairness that public sector workers earn significantly more than their private sector counterparts, with rates differing wildly throughout the country. They quote Director Neil O'Brien criticising the unfairness of the situation and calling for pay decisions to be made at a local level.
Public sector staff 'are 43% better off' than private workers - and the pay gap is widening09 May 2011
The Daily Mail reports findings from Policy Exchange report Public and private sector terms, conditions and the issue of fairness that public sector workers are 43% better off per year than their private sector counterparts when pensions are taken into account, quoting Director Neil O'Brien condemning the unfairness of forcing private sector workers to make all the sacrifices.
The state of pay09 May 2011
The Sun quotes Policy Exchange Director Neil O'Brien criticising the unfairness of the gulf between public and private sector pay as highlighted by report Public and private sector terms, conditions and the issue of fairness.
Public sector pay gap 'rising'09 May 2011
The Belfast Telegraph reports on Policy Exchange report Public and private sector terms, conditions and the issue of fairness, quoting Director Neil O'Brien advocating localised pay-setting powers for public organisations in order to help bring the public sector paybill under control and preserve jobs.
Public sector pay still needs reform09 May 2011
City A.M. cites findings by Matt Oakley and Ed Holmes in their latest Policy Exchange publication Public and private sector terms, conditions and the issue of fairness that, despite the recession, public sector workers are earning an hourly pay premium of 8.8% over their private sector counterparts as of December 2010.
Workers in the public sector are more than 40pc better off09 May 2011
Policy Exchange Director Neil O'Brien is quoted by The Daily Telegraph calling for a better-balanced system of public pay after report Public and private sector terms, conditions and the issue of fairness found that the pay gap between public and private sector workers has increased significantly.
Public sector pay gap 'increases'09 May 2011
BBC News reports on the findings of Policy Exchange report Public and private sector terms, conditions and the issue of fairness that public sector pay kept rising until December 2010 despite a supposed pay freeze, quoting Director Neil O'Brien condemning public sector pay as "hugely out of control".
Public sector pay still rising faster than in the private sector09 May 2011
New research from Policy Exchange reveals that the gap between public sector and private sector pay is still rising. Despite private sector workers losing out during the recession, public sector workers have seen their advantage grow.
For sale
If you would like a hard copy of this Research Note priced at £4 + £1p&p then please email: janet.batterbee@policyexchange.org.uk