Brown warns ‘no retreat’ on public sector pay
Gordon Brown did little to appease disgruntled public sector workers with his speech to the TUC congress today.
In his first appearance as prime minister, Mr Brown said the government would do nothing that risked increasing inflation, including more generous public sector pay deals.
Mr Brown said there would be “no loss of discipline, no resort to the easy options, no unaffordable promises, no taking risks with inflation.”
He added: “So let me be straightforward with you; pay discipline is essential to prevent inflation, to maintain growth and create more jobs – and so that we never return to the old boom and bust of the past.”
Mr Brown’s arrival on stage was greeted by union representatives holding signs bearing the slogan; “fair pay for public sector workers.”
Workers are annoyed the 2.5 per cent pay deal recommended by the independent pay review body has been staggered, which they claim reduces it to a below inflation 1.9 per cent.
In a speech that stressed his union links, Mr Brown attempted to get workers on board by reminding them of the “dark days” of the Conservatives and Black Wednesday, which saw interest rates spiral to 15 per cent and Britain’s exit from the ERM.
He said: “If we were to again allow inflation to get out of control by repeating the same mistakes of fifteen years ago we would be back to the same old familiar pattern of spiralling prices, high unemployment, a mortgage crisis and public spending cuts.”
The government will take no risks with the economy, Mr Brown told delegates.
Dave Prentis, general secretary of Unison, said Mr Brown had shown some grasp of members’ concerns and issues, in what he otherwise termed a “conciliatory speech”.
Mr Prentis continued: “He delivered lots of good news in an attempt to sweeten the bitter pill that was the message about pay discipline.
“Perhaps he hasn’t yet gauged the real feeling of public service workers having to bear the brunt of government cost-cutting.”
Tony Woodley, joint general-secretary of Unite, agreed and said Mr Brown had been addressing the wrong audience on pay restraint.
He said it was “wrong and unacceptable” for the prime minister to say a pay rise for public sector workers would cause inflation.
Mr Woodley added: “We wanted to hear him attack the greedy bosses in the City and elsewhere who take lottery win-type salaries and pensions but keep the pay of their workers down and cut their pensions”.
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