Is The UK Public Sector Becoming The New Private Sector?
Public sector servants in some parts of the UK have a higher salary than a private sector employee within the same region. A new study reveals that teachers, nurses and council workers earn nearly 15 percent more than private sector employees in similar cadre. The pay scale further varies depending on age, gender, qualification and experience. Even though the findings are true, leaders and unions oppose the revelation and term it as "misleading". They even argue that such a comparison is helping people to use it as a mean to erode further their pay and work conditions. According to Policy Exchange study, public sector servant earns 6.1 percent pay premium or £1,400 more in a year in similar conditions than the private sector employee.
To further complicate the issue, the pay is dependent on the area and its development. For example, in central London, a public servant receives a less pay in comparison to the private sector employee in equal category. However, according to Matthew Oakley, economics head of Policy Exchange, states that the pay scale and the bargaining depend on regional managers and their decision depending on circumstances. The scenario is different and has a lot of momentum. "A well established school in an area may not be having a problem attracting staff, but the one down the lane has a serious challenge in doing so" he added.
On the contrary, there was a possibility for the public sector to save recent rounds of cuts if it was possible for the civil servants to agree to a pay cut. This is what happening in the private sector where employees have agreed for a slight or a nominal pay cut to restrain a layoff. However, public servants with tremendous experience and skill are being paid enormously which equals to the pay scale in the private sector company. This is specific to certain employment categories and is not possible with every cadre of employment.
According to Dave Prentis, General Secretary of public sector workers union, the real difference between the top-level and bottom level employees. Bankers and financiers are always receiving bonuses and taxes at all times irrespective of economic condition. On the contrary, the public sector may be after the footsteps of the private industry regime to save money and employment. Eliminating pay scale based on the region will bring a positive approach to employment and will end the inequality that the country now faces. There will be inequality in the public sector and the biggest losers will be lower-paid staff.
Both public and private sectors have to work together to bring out a policy or action that would put an end to the existing inequality. It is necessary for both the sectors to think about offering a minimum wage that would help meet each weekend for an employee depending on their qualifications and experience. Ending inequality is another way to balance the gap and end the long run comparison procedure. Becoming commercial is one way helpful for the public sector as it can reap benefits and yet support the same team even in tough times. That said; the company has to work out thoroughly on developing a scale that will not create a gap within the organization.
There are many challenges ahead for the public sector before it adopts an appropriate action that would decrease and eliminate, over a period, the inequality in pay scale. Privatization of the UK public sector will help reduce over spending and at the same time deliver an even pay scale across all the regions based on the cadre. Such action will bridge the gap between the government and private sector pay scales. By Manish P
