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05.01.11

No-redundancies deal wins NHS chiefs’ backing despite pay impact

The NHS Employers ‘no-redundancy’ deal that could force more than a million health workers to accept a two-year pay increment freeze has been backed by a dozen chief executives.

The no-redundancy offer, which would apply to staff on bands 1-6, on incomes up to just over £34,000, was described as “essential” if the NHS was to protect staffing levels by the 12 chief executives in a letter to HSJ.

The national framework offer to protect jobs at the expense of pay would still have to be settled locally in each Trust.

Health service unions, including Unite and Unison, have hit out at the “tough choice” that will have to be made and the BMA has said it is “extremely concerned” that a real-terms pay cut for so many low-paid staff is the only option on the table.

NHS Employers says the two-year freeze on increments, which would apply on top of the existing pay freeze, would save £1.9bn a year.

The HSJ letters’ signatories, from NHS trusts all over England, wrote: “N HS Employers’ proposal represents a practical way forward, which maintains the integrity of the nationally agreed pay systems.

“Each of our organisations has plans to improve quality and productivity over the period of the spending review, but these will take time to deliver benefits. In the meantime, we want to maximise employment security for our staff and retain their skills in the NHS. We know from local feedback and surveys that trade unions have undertaken, that job security is a key concern for staff.

“We believe that this is a fair deal and one that can be delivered.”

NHS Employers said in return for local pay increment freezes for 2011/12 and 2012/13, including an equivalent freeze for senior managers, employers would:

Provide a guarantee of no compulsory redundancies for all staff bands 1 to 6.
Seek to avoid compulsory redundancies for all other staff groups, including consultants and very senior managers.
Commit to maintaining training opportunities for junior doctors and dentists.
The unions will decide later this month what action to take in response to the offer.

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