Gordon Brown is fond of talking about long-term plans. So there is some logic in his resurrecting the idea of multi-year public sector pay deals. Such deals have some merit in principle, yet Mr Brown’s simultaneous demand for pay increases of only 2 per cent – necessary because of his government’s shortage of cash rather than his stated desire to control inflation – makes them likely to fall victim to fierce battles with public sector unions.
The case for multi-year deals is that they improve long-term financial planning for government departments and provide a solid foundation for reforming pay structures and working practices.

COMMENT 

