Local authority faces legal action over imposition of pay cuts

Just 17 members of staff at strike-hit Southampton City Council – or 0.003% of the total – have failed to sign new employment contracts implementing a pay cut.

The deadline for the 4,627 staff to return their signed contracts passed this week. However, unions have launched legal action over the “dismissal and re-engagement” process.

UNISON said it had lodged legal claims against Southampton for:

• failing to provide staff with an opportunity to put forward any representations
• failing to provide staff with an opportunity to appeal against their dismissal
• failing to consult over the decision to dismiss all staff.

A preliminary Employment Tribunal hearing has been allocated for 5 August 2011.

Under Southampton’s original proposals, all staff earning more than £17,500 faced a pay cut:

• Those earning more than £65,000 would see their pay cut by 5.5%
• Those earning between £35,001 and £65,000 would see their pay cut by 5%
• Those earning between £22,001 and £35,000 would see their pay cut by 4.5%
• Those earning between £17,501 and £22,000 would see their pay cut by 2%.

There would also be a pay freeze for two years, reduced mileage rates and removal of benefits such as car allowances.

However, a spokeswoman for Southampton said a revised deal offered to unions last month was on the table that would have meant that staff earning £22,000 or less – representing more than half of its employees – would face no pay cut at all.

Other proposals in the ‘ten-point plan’ included a two-year formal review of the terms and conditions – to take place in the autumn of 2012 and come into effect for 2013/14 – and an agreement not to revisit terms and conditions as part of balancing the budget again.

There would also have been reviews of all past rejected requests for voluntary redundancy and of the council’s use of agency staff and consultants.

The local authority has maintained that the pay cuts are necessary if it is to avoid having to implement a major programme of redundancies and significantly cut services. It will still have to implement 250 job cuts in 2011/12.

Southampton also said it would fail to make savings of £500,000 a month if the changes were not brought in. The local authority has calculated it needs to save £25m this year and £65m over four years.

A range of workers at Southampton have been striking in the last two months, including refuse collectors, librarians and social workers. Work to rule by all staff is also continuing.

Keith Sonnet, UNISON's Deputy General Secretary, said: "Sacking all council staff and re-hiring them with savage cuts to pay and conditions is grossly unfair and unnecessary. The council is telling the government it expects to pile more than £4m into its reserves - money that should be used to protect staff and services. Southampton council has also failed in its duty to carry out the proper procedures for staff to appeal.

"The council is ignoring the destruction this will wreck on hardworking staff and their families. Staff have already been hit with a two-year pay freeze and are struggling to cope with the rising cost of living. Our members are outraged that the vital services they provide for the community are also set to be slashed.”

Sonnet insisted that the fight was “far from over”, adding that the unions would “continue to take action against Southampton Council's devastating cuts, which can only harm the local community and economy”.

The developments at Southampton come just a week after Shropshire Council formally set in train its own ‘dismissal and re-engagement’ process, by sending dismissal letters to all staff. Employees will be offered immediate re-employment with effect from 1 October 2011.

The Shropshire scheme will see a 5.4% pay cut, phased in over two years, and amended sick pay.

Philip Hoult