Public Image

I was watching the Labour Leadership special edition of Question Time last night (i made an exception to my usual rule about avoiding serious annoyance prior to sleep), and found it largely interesting and thoughtful. There was, however, one question, fairly innocuously phrased, that grabbed my brain. A quite averagely photogenic young lady asked if a recent report showing public sector pay to be, on average, higher than private sector pay made their defence of public sector workers seem a bit daft (my paraphrase from memory).

The implication was fairly clear: public sector workers are overpaid, and should stop whinging, the cuts are necessary etc etc. As someone whose parents have both worked in the public sector, and who, himself, has worked in both, it prompted some anger and annoyance.Partly because i felt no-one was robust in their attack on the implication of the question

David Milliband was right to point out that, due to contracting out, many of the lower paid roles in the public sector are now technically private sector, this skews the analysis quite a bit. But even if we put that aside, the facts are hardly so clear. Yes, public sector median is higher, but the mean average is usually lower. Even allowing for someone wanting to take the median as their average (mathematicians and social scientists of all stripes will see the issues with both), the difference actually isn't that great, being (on average, NOT in every instance) around a couple of grand more a year (I'm quoting from 2007 figures, having not found the recent report yet). And that awful, excessive median figure??
£20,000 a year.

Of course there will be issues with this, many will be part-time working (possibly due to cutbacks), and so earning less (though obviously the pro-rata rate is correct). Either way it can hardly be considered excessive. Actually it is a little surprising, because, of the half dozen people i know/have known working in the public sector, only one person earns over £20000 (and that after 30 years in this area of work, and being quite high in his department). most are paid sub-£18,000. My pay, private sector retail, is £12000 pro rata; it seems too little for my efforts, but then who's doesn't? i certainly don't grudge friends who do a similar role in county libraries their £13000. they are paid fairer than i am, but equally they work very hard. In some areas of the public sector pay is not enough; my mother until recently worked for years as a domestic (cleaner) in an old people's home; it was filthy, physically unpleasant and tiring work; she often left a hour after her shift ended (a sense of duty, they call it), because of under staffing; she has trouble with her back because of it; it is also essential work (can you imagine anywhere short of a hospital that would be dirtier, yet hygiene would be so important??)......she got paid just over £12000 pro-rata. Tell her she was overpaid. if you told me, i would be inclined to boot you down the stairs.


Of course, as the newspapers gleefully point out every day, excessive top public sector pay is a concern. Frankly, no-one is more concerned than your average public sector worker, who isn't terms and conditions go down, while the top brass get brassier every year. But these people are not typical. And sadly, they are rarely, the ones losing substantial sums in pay reviews.No, the people who are, are those on £14k say, who in some cases have lost nearly £10% of their income.
And while top pay in the sector is often high, it is still nowhere close to the sums earned by big private sector executives. You can quibble with whether a council leader actually deserves his £150k, but its difficult to see how his actual role is worth less than the head of (an example close to my heart) a major entertainment goods retailer on £800k. the former administers essential services for millions of people, the latter sells luxuries to us.

The bigger problem, and the one which prompts the private sector to point in the opposite direction, is the often grossly unfair pay scales in the private sector. The public sector gets attacked for earnings that rarely go below £12k pro-rata (except, perhaps, those contracted out to the private sector), and rarely go above £200k pro-rata, while the private whistles and looks the other way, when someone points out its bottom salaries frequently go below £10000 (16-21 year olds mainly), and its top salaries often are in excess of £500k. Of course, it is only fair to point out that most small businesses operate a fairer pay scale than this; the benefits of actually knowing and working with your staff day to day i guess. But in terms of the big private companies, comparable to councils, the NHS, etc, then unfair pay scales are the norm.

the most disappointing thing, though, a point which speaks sad volumes about attitudes in our society now, is that ordinary private sector workers seem to be buying into this tactic. Instead of saying "hang on, why are we paid so badly? how can we get a fairer pay system?", many are looking at the public sector (which performs valuable, often essential, roles: Education, NHS, Care homes, Social Services) and asking "why should they be better paid?". you can probably guess who i blame for the growth of such attitudes., so i won't state it. But the public sector has protected itself better against the relative erosion of pay and conditions partly because of the unions good work. Retail, for example, is rarely unionised because of large scale part-time work, and a rapid turnover of staff. organised resistance is tricky to say the least, especially in a "flexible labour market" where replacement workers are easy to come by, and jobs are much needed.

If Labour has any aim, as the progressive party it is, but has rarely shown in recent government, it should be to stop the growth of excessive pay difference in all sectors, public and private, and to encourage a better society where pay is fairer and taxation more progressive. Pleasingly, there was some evidence of that feeling among the leadership panel last night, but they really need to be louder and firmer on it. 90% of people in this country earn under £40k, and they are all being squeezed, and they all need Labour to be clear it is fighting for them.