What the report
left me less than clear about is what exactly the AMs concerned – all of them,
not just the Tories – think should change here.
Drawing attention to apparently large figures to attract headlines is
easy. Encouraging others to feel equally
outraged is equally easy. But what is
the actual problem, and what solution are they offering?
Presumably, the
arrangements for voluntary redundancy were freely negotiated between staff and
employees – are the AMs arguing that the Welsh Government, or the Assembly
through legislation, should interfere with or in some way constrain the rights
of either or both parties to negotiate such a scheme?
The report
particularly focuses on the payments being made to higher paid staff, but any scheme
which bases the size of redundancy payments on salary and length of service
will inevitably favour higher-paid staff.
Are the AMs suggesting that long-serving higher-paid staff should be
excluded from the schemes, or made subject to some other, less generous scheme?
Maybe they’re
suggesting that there’s nothing wrong with the schemes, or with the selection
of the people for redundancy, but that the way in which the schemes have been
applied has been over-generous.
Or perhaps they’re
suggesting that the staff concerned should not have been made redundant at all. They might be right on that, in some cases at
least, but that would sit strangely with a position where AMs of all parties
are also calling for ‘greater efficiency’ and ‘reduced management overheads’. I’m sure that some of the same people have
also criticised public bodies for keeping senior people on the payroll even
after their roles had been abolished, although I can’t immediately trace the
press reports from the time.
It looks like
just another part of a continued overall assault on the public sector and those
who work in it. That wouldn’t be at all
unexpected from the Tories; what is rather less expected is that is that all
the other parties who’ve signed up to the report are so keen to join in.
Most
organisations find from time to time that their requirements have changed and
that there is an impact on the numbers and type of staff employed. The point of redundancy schemes is that they
aim to ease the transition and maintain the goodwill of those affected by
change. Under almost any scheme
imaginable, those with the highest salary and the longest service are likely to
receive the highest pay-outs. That is a
feature, rather than a flaw, in the process.
I’m no fan of
the size of the pay differential between the highest and lowest paid staff in
organisations, whether in the public or the private sector. But merely criticising the numbers of pounds
attached to the outcome of processes based on that differential looks like simple
headline-chasing rather than addressing the underlying unfairness and
inequality.
3 comments:
The underlying problem is rather that Wales has no separate salary scale for the top salaries in our large bureacratic sector. Yes we could use such a thing to narrow differentials. But more important is to incentivise the private sector. Linking top salaries in Wales to the levels of the Home Counties creates distortion which must be removed.
The underlying problem is that we in Wales have no separate salary scale for top bureaucrats in Wales. Yes, we could set narrower differentials. But a bigger benefit would be to remove the present distortion, in favour of the public sector and against the business sector. We cannot get a solid tax base, or self-rule, until we have a much larger business sector. The instinctive dislike of high salaries/redundancy payments is well founded.
Jonathan,
You say "But more important is to incentivise the private sector." and then "We cannot get a solid tax base, or self-rule, until we have a much larger business sector."
Why? Both these assertions seem to be based on the notion that the private sector produces and the public sector consumes. It's a commonly held view, to be sure, but being commonly-held doesn't make it correct. In economic terms, there is no essential difference between the two sectors; both add to GVA. What matters is what activity happens in the economy, not in which sector it happens.
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