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Council makes latest bid to resolve wage cuts dispute with unions

Trade unions Unison and Unite are to ballot their members at Southampton City Council on whether to accept the latest offer made by the authority in their long-running dispute over wage cuts.

Earlier this year Southampton initiated a dismissal and re-engagement process to drive through changes. However, a number of strikes have taken place since then.

Key elements of the latest proposed deal are:

  • The return of £1.17m into the wage bill. A previous offer to return £1m had been rejected
  • One-off payments of £300,000
  • No pay cut for all council employees on a full-time equivalent basic salary of £22,000 or less
  • Employees on the SCP25 pay grade will have no pay cut (previously they would have faced a 2% cut)
  • All other employees will receive some reduction in the pay cut
  • An incremental freeze until April 2013 and a freeze on pay rises will remain
  • The unions would agree to drop all legal action against the council, including a claim for failure to consult on the dismissal and re-engagement
  • Individuals would still be free to pursue unfair dismissal claims, but would not receive legal representation from their union.

According to Unison, its negotiators considered the proposals to be the best that could be achieved through negotiation. However, the union said it would not be advising members on whether to accept or reject the offer.

Branch secretary Mike Tucker said: "Members will have to decide whether to accept the council's compromise, continue with the industrial action or continue with the legal action.”

But Tucker also said: "The council has just started consultation on next year’s budget, with up to 250 jobs at risk. I think UNISON members will be sceptical about these proposals, given their pay is being cut to save jobs."

The secret ballot will open on November 4.