Trade Union Craft JNC Pay and Conditions Submission 2012

Transcription

1 Joint Negotiating Committee for Local Authority Craft and Associated Employees Trade Union Side: UCATT, Unite, GMB, CSEU Secretary: Steve Murphy Chair: John Allott UCATT Unite UCATT House Sovereign Court 177 Abbeville Road 300 Barrow Road London SW4 9RL Sheffield S9 1JQ Tel: Tel: Fax: Fax: JOINT NEGOTIATING COMMITTEE FOR LOCAL AUTHORITY CRAFT AND ASSOCIATED EMPLOYEES TRADE UNION SIDE PAY AND CONDITIONS CLAIM 2012/13 Trade Union Side Local Government Pay Claim 2012/13 1. INTRODUCTION The Trade Union side look forward to opening constructive negotiations with the Local Government employer s side. Following the disappointing resolution of the negotiations two years ago, and having being denied the opportunity to enter into meaningful negotiations last year, the Trade Union side are hopeful of a balanced and fair outcome. The Trade Union Side believes that the continuing real term wage cuts for local authority craft workers is unsustainable. The Trade Union Side are convinced that if allowed to continue they will damage the long term prosperity of the wider UK construction industry and limit the ability of the industry to retain the skilled workforce it needs to meet increased demand into the medium term. Therefore, whilst being mindful of the economic situation and the pressure being brought to bear on Local Government at this time, we strongly hold the view that a positive settlement for the workforce will have to be achieved in the 2012 talks. Recent pay settlements for employees covered by the Red Book have seen pay freezes, with 0% being offered as the settlement for two consecutive years, which has been compounded by the ongoing inequality with rising pay rates in the construction industry s private sector. Furthermore, from April 2012 the National Insurance rebate in the Local Government Pension Scheme of 5.3% will be reduced to 4.8%, of which employees have to cover 0.2%. This will result in a reduction of the take home pay for Local Government employees. These facts, along with a number of contemporary issues specific to the Red Book underline the importance of this year s negotiations. 1

2 The Trade Union side recognises that the construction industry has been through a very difficult period in recent years as a consequence of one of the harshest recessions experienced by the British economy in decades. However, it is not a completely bleak situation. According to industry experts Glenigan, several regions across the UK continued to enjoy a rise in project starts in November 2011, particularly in Wales, the South East and South West of England. Scotland enjoyed an annual growth rate of 10%. We expect that budget cuts will result in less money being available for new build housing, leading to an increase in refurbishment work next year as Local Government focuses on improvements to their existing stock. The Joint Negotiating Committee for Local Authority Craft and Associated Employees pay and conditions negotiations offer an opportunity to address the above issues bearing in mind the construction industry will see signs of recovery and that the cost of living for craft and associated employees continues to rise dramatically. 2. THE FUTURE OF THE JNC RED BOOK Since its establishment from the consolidation of a number of local authority craft agreements nearly thirteen years ago the Red Book has provided a positive framework for the negotiation of pay and conditions for Local Authority Craft and Associated Employees. It has been disappointing for the Union side that the last couple of years have been so fruitless for their Local Government employees. Nevertheless, support for the Red Book has come from both sides of the JNC and on 17 September 2008 the Employers side issued a statement recognising the effectiveness of the national craft agreement: The national employers recognise that employment issues specific to local authority Craft and Associated employees have been effectively addressed within the existing national negotiating machinery for many years and we therefore remain committed to reaching future settlements through national collective bargaining for this group of valued employees. The Trade Union side believes that maintaining the Red Book remains the only way to effectively guarantee that the vast number of employment matters, specific to local authority craft workers is addressed in a standardised manner within this specific context. Examples are: tool allowances, working at heights, payment for work in discomfort and inconvenience, abnormal working time, extra payments for continuous extra skill or responsibility and provisions for apprentices and young trainees. The existence of a separate national agreement and pay and conditions bargaining arrangement for Craft and Associated Employees is due to the widely accepted view that it is the most efficient way to address the distinct employment conditions of these workers. As a consequence of this distinction, the comparators for Craft and Associated employees are similar workers in the private sector construction industry. 2

3 The Trade Union side firmly believes that this year s negotiations must once again demonstrate the importance of the continuation of the JNC national agreement for Craft and Associated Employees, by addressing the distinct concerns of these employees and the ability of Local Authorities to provide quality services to local people. 3. BROKEN PROMISE OF PLEDGED 250 PAY RISE TO PUBLIC SECTOR WORKERS In a previous submission it was explained that in the June 2010 Budget the Chancellor, George Osborne, pledged a 250 flat pay rise to those public sector workers who earn below 21,000 per annum in 2011 and The Trade Union Side had asked for this to also apply to Local Government workers who earn below 21,000. To our greatest disappointment, local government workers earning below 21,000, did not receive the 250 pay rise in 2011, unlike any other public sector groups such as the armed forces, prisons, NHS, teachers and civil servants. We are firmly of the belief that as local government workers did not receive this flat pay rise they were initially promised in 2011 this issue needs to be taken into account in this pay claim. 4. ECONOMIC CONDITIONS 4.1 Cost of living This year s pay and conditions settlement has to take into account the rapidly increasing living costs. Figures from the Office for National Statistics (ONS) show: The CPI (Consumer Price Index) annual inflation is as high as 5.0 per cent in October The most significant upward contributions to the CPI 12-month rate to October 2011 came from: - transport which contributed 1.2 per cent. The largest effect came from fuels and lubricants where prices rose by 15.4 per cent over the 12 months to October housing and household services which also contributed 1.2 per cent. The largest effects came from gas where charges rose by 24.1 per cent over the 12 months to October and electricity where charges rose by 14.9 per cent over the same period. - food and non-alcoholic beverages which contributed 0.6 percentage points. The upward contributions were widespread with almost all categories having upward effects; the largest rises included meat where prices rose by 5.8 per cent over the 12 months to October, bread and cereals which saw a 6.2 per cent rise. 3

4 In the year to October 2011, the all items RPI (Retail Prices Index) rose by 5.4 per cent. The annual change concerning fuel and lighting costs was an increase of 20.2%, which has been the highest figure since February Over the same period, the RPIX, the all items RPI excluding mortgage interest payments, rose by 5.6 per cent. Since January 2011 workers have also had to contend with the VAT increase. VAT has been raised to 20%, impacting on goods and provisions that people buy every day. The table below shows the rising cost of living from October 2010 to October CPI RPI RPIX % change % change over 12 over 12 months months 2010 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct % change over 12 months Anything less than 5.6% for the period 2012/13 would mean a real terms pay cut for Craft and Associated employees. 4.2 Pay settlements / Industry comparators The following groups have received pay increases either in 2010 or in 2011, some pay rises have already been agreed for BATJIC 2% increase from September 2010; 1% increase from September JIB (Electrical) 5% increase from 2010 HVAC 2% increase from October 2010 RUF 2% increase from January 2011 and a further 2% from January

5 NAECI 4.7% increase from January 2011; negotiations currently taking place for 2012 JIB (Plumbing) 3% increase from January 2011 and repeated in January 2012 CIJC Working Rule Agreement: 1.5% increase from September Figures from the Labour Research Department Payline database show a median increase of 2.5% on lowest basic rates for all sectors in the three months to October The median for the three months varied little by sector. The private sector median was 2.6%, the public sector 1.7%, the manual median was 2.8% whilst for non-manual it was 2.5%. The median pay increase for the year to October 2011 was 3.0%, taking into account all the agreements monitored though the LRD Payline database. There can be little doubt that such pay awards are being achieved on the basis that the wider construction industry can legitimately expect a sustained period of growth. 5. CONSTRUCTION INDUSTRY PERFORMANCE 5.1 Past and current performance There can be no doubt the last few years have been difficult ones for the construction industry. The advent of the Coalition Government has seen a cut in the Government funded infrastructure projects, such as Building Schools for the Future, resulting in a knock on effect on the whole sector. However, last year the UK economy grew in the three months to June 2010 by 1.2% thanks to a 9.5% rise in construction output. At the end of October 2010 it was shown that the UK economy grew twice as fast as had been predicted, with GDP expanding 0.8 per cent, well above the 0.4 per cent predicted by economists. According to the Construction Skills Network, the UK economy is expected to have grown by 1.8% in 2010, and the construction industry has grown by about 4-5% in Public housing and public non-housing were were the most buoyant sectors in 2010, with significant amount of work being carried out. Whilst this growth spurt in the construction industry can be attributed to completion of public service contracts commissioned by the last government, it is also impressive when contrasted against the severe cuts in demand experienced by the industry during the height of the recession. Nevertheless, this year the sector s performance is not as bleak as it might seem. As stated before, several UK regions have continued to enjoy a rise in project starts in November 2011 that was already prevalent in previous months, particularly in Wales, the South East and South West of England. Also Scotland enjoyed an annual growth rate of 10%. 5

6 The Glenigan Index for October 2011 increased by 6% on a year ago. According to Glenigan, the underlying value of private housing starts for the UK as a whole has increased for the third time running. The Non-Residential Index for October 2011 is 2% up on a year ago as the effects of Government funding cuts were counteracted by growth in private sector construction. The Civil Engineering Index for October 2011 was 79% up on a year ago. Both utilities and infrastructure starts increased dramatically. The infrastructure sector saw large investments in road and rail station projects in South West and the South East of England Outlook and forecasts According to Glenigan, the 2008 Pre-Budget report started off a number of large increases in funding for social housing, which have propped up construction starts for the last three years. The underlying value of social housing project starts during 2010 was 30% higher than the level seen during The government has also pledged to deliver up to 150,000 affordable new homes during five years to In his 2011 Autumn Statement, the Chancellor has also announced a number of measures to boost the industry s output over the next years. Most importantly, the Government will spend 5bn on infrastructure projects over the next three years. Projects covered by this money includes: the electrification of the Leeds to Manchester rail route, a new rail line linking Oxford to Milton Keynes and Bedford, a revamp of the Tyne & Wear Metro and the widening of the A14 around Kettering. In the Autumn Statement, Government promised to support construction companies that cannot get bank finance with a 400 million fund that will set off projects that already have planning permission. In addition it pledged to use mortgage indemnities to help 100,000 families to buy newly built homes. Recent figures from the Office for National Statistics (ONS) support this expectation. For example, the total volume of construction output in the fourth quarter of 2011 grew by 0.9% compared with the same quarter in 2010 and by 2.8 for the whole of 2011 compared with Such growth is also identified by the sector skills council ConstructionSkills who forecast annual growth through to 2015 of 6% in private housing, 4.4% in infrastructure, 4.4% in industrial, 4.6% in commercial and 1.9% in housing repair and maintenance, requiring annual recruitment of just under 43,000 operatives 2 for the UK construction industry as a whole. The Trade Union side is confident that over the next few years the construction industry as a whole will see positive developments and sustained growth, including in the public sector. 1 Output in the Construction Industry Q ONS February Blueprint for UK Construction Skills

7 6. COMPARISON OF JNC LOCAL AUTHORITY CRAFT AND ASSOCIATED EMPLOYEE PAY RATES WITH PRIVATE SECTOR Pay rates for Local Authority Craft and Associated Employees continue to lag behind comparable workers in the rest of the construction industry (see tables below for comparison). Table 1. Construction Industry Joint Council Working Rule Agreement Wage Rates Role / /2012 Per Week Per Annum Per Week Per Annum Per Week Per Annum General Operative , , ,960,36 Skill Rate , , , Skill Rate , , ,44 Skill Rate , , ,88 Skill Rate , , ,16 Craft Rate , , Table 2. Joint Industry Board for the Electrical Contracting Industry Wage Rates Role 2008 Hourly Rates 2009 Hourly Rates 2010 Hourly Rates National London National London National London Technician Approved Electrician Electrician Table 3. Joint Industry Board for Plumbing Mechanical Engineering Services in England & Wales Wage Rates Role 2010 Hourly Rates 2011 Hourly Rates 2012 Hourly Rates Technical Plumber Advanced Plumber Trained Plumber In relation to the above, the Trade Union Side are increasingly concerned about the growing pay differential between local authority craft workers and those employed in the private sector. It would be remiss of the Trade Union Side if we failed to bring such differentials to the attention of Local Authority employers. It should be considered for example that the current weekly rate for a General Operative employed under the Construction Industry Joint Council Working Rule Agreement (CIJC) is , increasing to per week for a Craft Operative under the same agreement. By comparison a Labourer employed by a Local Authority earns per week and a Craft Operative Such comparisons are equally stark when advanced craft rates are taken into consideration. For example an Electrician employed by a Local Authority earns 7

8 per week whilst they can legitimately expect to earn per week employed in the private sector under the terms of the Joint Industry Board for the Electrical Contracting Industry (JIB). The same comparison for a Plumber sees the weekly rate increase from to It is not just in the rates where the differences should be questioned. The position taken by Local Authorities towards their craft and associated workers simply doesn t reflect the reality of the wider industry. Elsewhere in the UK construction industry private sector employers recognise the importance of retaining their skilled workers and are taking the appropriate steps. It should be recognised for example that workers engaged under the terms of the Plumbing Mechanical Engineering Services Joint Industry Board (JIB-PMES) were awarded a 3% increase in 2011 and then again in Similarly the 200,000 workers engaged under the terms of the Building and Allied Trades Joint Industry Council (BATJIC) were awarded a 2% increase in 2010 and a further 1% increase in 2011, whilst the rates under the CIJC increased by 1.5% in SKILLS SHORTAGES According to ConstructionSkills Blueprint for UK Construction Skills , there is long-term optimism, forecasting output in 2015 to be 6.2% higher than The Blueprint also reveals an Annual Recruitment Requirement (ARR) of about 43,000 between 2011 and Blueprint for UK Construction Skills Annual Recruitment Requirement (ARR) by occupation Occupation Annual Recruitment Requirement (ARR) Wood trades & interior fit-out 6,080 Bricklayers 2,130 Painters & Decorators 3,450 Surveyors 970 Plasterers & Dry liners 1,220 Scaffolders 620 Plant operatives 1,560 Labourers (not elsewhere classified) 3,870 Plumbing & HVAC Trades 1,180 Electrical trades 1,670 * The ARR provides an indication of the number of new employees that would need to be recruited into construction each year in order to realise forecast output. 8. APPRENTICESHIPS The trade union side are keen to highlight the coalition government s intention to create 75,000 new apprentices a year for the next four years. The Trade Union side 8

9 would be keen for local authorities to act as the catalyst for new craft based apprenticeships. In July 2008 the Local Government Association (LGA) conducted the LGA Workforce Survey, which informed the setting of an aspiration to increase the number of apprenticeships offered by local authorities from 7,500 to 15,000 by In November 2009 the LGA published the Apprenticeship and Trainees Survey. From a response rate of 39% of English local authorities, the survey showed that responding authorities were employing a total of 3,022 apprentices. The LGA then used this figure to estimate that in total authorities were employing 7,100 apprentices (a projected figure). The survey also asked authorities about the numbers of apprentices they were intending to employ by December Responding authorities said that they were planning to offer a total of 3,685 apprenticeships. Using this figure, the LGA estimates that, in total, authorities in England intend to provide 9,800 apprenticeships by December Assuming that the LGAs projection figures are correct, and do not in fact underestimate the number of apprentices that will be employed at the end of 2010, this will mean a shortfall of 5,200 apprenticeship places on the LGA target of 15,000 apprentices by Clearly there is a long way to go before the LGA even meets its own target. Such a shortfall coupled with the number of skilled employees lost to the construction industry since the start of the recession, places a significant responsibility on local authorities to take urgent steps to address the issue of the under-employment of apprentices and a declining construction skills base. These pressing concerns will also need to be married up to the government s ambition for thousands of new apprenticeships to be delivered. LGA Apprenticeship and Trainees Survey 2009 November 2009 November 2009 December 2010 December 2010 No of apprentices based on responding authorities No of total apprentices based on LGA projection * No of apprentices based on intentions of responding authorities No of total apprentices based on LGA projection * 3,022 7,100 3,685 9,800 The Apprenticeship and Trainees Survey 2009 was conducted online during October It looked at the number of apprentices and trainees as at October 2009, and the number of apprentices and trainees that local authorities planned to employ by December

10 (* A mean average for respondents by authority type was used as an indication of the likely figure for non-respondents.) The trade union side would like the opportunity to discuss the issue of apprentices with the Employers and to see their plan for how local authorities intend to match not only their internally set goals, but to meet the government s aspiration of thousands of new apprenticeships being provided. The Trade Union side believe Local Authorities can provide the perfect place to deliver an expanded programme of apprenticeships. The stability offered by working for Local Authorities, whilst allowing apprentices to be trained in a large number of roles is an area that should be broadened and explored. In pursuing a bid to increase the number of apprentices training in the UK, Local Authorities can provide varied and interesting opportunities for young people to gain vital skills, whilst renewing the workforce coming in to local authorities as Building Craftworkers. Providing apprenticeships in local authorities adds to the general skills set of the local community, whilst serving local residents and assisting with wealth generation. The average retirement age for Building Craftworkers is between years, due to work place injuries incurred by Craftworkers throughout their professional lives. Research undertaken by UCATT this summer, demonstrates that the majority of Building Craftworkers in the NHS are nearing late middle age and retirement, assuming the picture is similar in Local Government, it is vital to boost the numbers of young people working as Building Craftworkers for local authorities to make up for the staff shortfall that is looming. The numbers of apprentices shown in the table above are not necessarily apprentices training in the building industry. In order to match demand for Building Craftworkers skills, local authorities are going to have to increase and improve their offer to apprentice Building Craftworkers. 9. HEALTH, SAFETY and WELFARE of the WORKFORCE In 2010 the Employers indicated they wished to progress discussions on Health and Safety issues. The trade union side suggest the following: (The sentences below should be added within Part 4.4: Management of health & safety) Trade union Safety Representatives (Add in 1.4, as second sentence) There is plenty of evidence about the advantages and benefits safety representatives bring to workplaces in terms of improved health, safety and welfare as well as for worker consultation. This is particularly important for workers in construction trades, which due to the nature of their work are often exposed to higher risks to their health and safety. 10

11 (Add in 2.2, into second sentence) This will include the provision of facilities (office, photocopier, telephone etc), information, opportunities Inductions (add as fourth last bullet point) All Local Government Craftworkers must go through a health and safety induction process before they are allowed to commence working. This induction will concentrate on specific health and safety issues and where possible should be given by a trade union Safety Representative or Convenor. A competent workforce (add as third last bullet point of section 3) All management and supervisory staff will have a demonstrable competence in both appropriate management or supervisory skills and health and safety matters. All workers will have a demonstrable skill level incorporating health and safety training. Before starting employment all Craftworkers need to be in possession of the appropriate Construction Skills Certification Scheme (CSCS) card, or obtain it within a short specified timescale, in which case the employer should bear the costs of the card. Management must ensure that the CSCS card is renewed at least within the prescribed timescale. Personal Protective Equipment (add as second last bullet point of section 3) All manual Craftworkers shall be provided with the necessary Personal Protective Equipment (PPE). The PPE must be provided free of charge, and no deductions from pay shall be made for this. The PPE must be both appropriate for the job and fit the worker. Particular attention needs to be paid to female Craftworkers being provided with fitting equipment. Management shall make clear (e.g. in inductions, training etc) that PPE has to be worn/used at all times when performing a job for which it is recommended. Workers shall comply with this requirement. Occupational health (add as last sentence in bullet point 7 of section 3) Particular attention should be paid to occupational health problems, which often arise from construction/maintenance work when the right precautions are not taken. This includes risks of manual handling, dermatitis, hand-arm vibration, musculo-skeletal disorders, noise and respiratory problems. The agreement must recognise that Building Craftworkers work causes them far greater injuries in the workplace than the common repetitive strain injury sometimes sustained by office workers in professional roles. The agreement must include an improved response for Building Craftworkers occupational health requirements, with specific work place policy for these workers. 11

12 Asbestos (Add as new bullet 8 of section 3) Local government Craftworkers doing maintenance and repair work often face the risk of coming into contact with asbestos-containing materials, which represents a significant risk to their health. The underlying approach for all workers must be to Think asbestos! Stop Work if you are not sure whether you are working on asbestos. In order to be able to take the decision to stop work all workers must be trained to recognise asbestos material. Local authorities should follow an approach where all work on asbestos, i.e. both licensed and non-licensed work, should be carried out by professional licensed asbestos removal companies. 10. UNION LEARN REPRESENTATIVES The trade union side would like to see recognition for Union Learn Representatives in all workplaces and sites. The trade union side would like to see an extension of Union Learn Representatives being given time to provide training in more Local Authority workplaces, and an initiation of this practice on sites and in other areas where it does not currently take place. We have identified a significant proportion of our members as having a strong need to gain basic skills and computer skills, amongst others. It is right that they are offered the opportunities to gain these skills in the workplace, which will enhance productivity by improving their skills and knowledge base. Union Learning Reps provide key opportunities for workplace development of staff that boost morale, make the work environment a more accessible place and support learning through work whilst up-skilling staff. Giving members of staff time both to train or be trainers is a good way for Local Authorities to demonstrate they are responsible employers that believe in investing in their staff. The Trade Union side are keen to see the Employers side supporting work place learning through the Union Learn programme, and encouraging staff to undergo workplace training opportunities. 11. THE TRADE UNION SIDE CLAIM a) Increase in Basic Pay A significant increase in basic pay which takes into account the rising cost of living and the disparity with wages in the private sector construction industry, and, to a much lesser extent, the reduction in the NI rebate in the Local Government Pension Scheme. b) Guaranteed Minimum Bonus Consolidation of the Guaranteed Minimum Bonus on agreed 2009 pay rates. 12

13 c) Consolidation of Building Labourer and Heating and Ventilation Mate Grades Merging of the Building Labourer and Heating and Ventilation Mate grades with pay set at the current rate of the Heating and Ventilation Mate grade plus any increase agreed in this year s pay negotiations, with the title of the new grade to be agreed by both sides of the JNC. The Building Labourer Grade is now paid just 6.59 per hour ( weekly rate / 37 hour week (outside London) just 0.51p more than the National Minimum Wage. The Trade Union Side believes that such levels of low pay is an indictment on Local Authorities as good employers and is clearly unacceptable. d) Extra Payments and Allowances The Car Allowance should be increased to take into account the rising cost of fuel. e) Working Hours A reduction in the working week to 35 hours per week in London and 36 hours per week outside London. f) Holiday entitlement An increase in the basic annual leave entitlement from 21 days to 25 days. A review of the current 5-year qualifying period for an additional 5 days leave with the aim of reducing the qualifying period to 3 years. An increase of a further 5 days after twenty years service. g) Bereavement Leave A thorough review and clarification of entitlement to Bereavement Leave. In particular, the removal of the discretionary element on the granting of Bereavement Leave. Exact clarification on the scope of the definition of immediate family. h) Paternity Leave Two weeks paid Paternity Leave. i) Sick Pay A move from 6 months full pay to 9 months full pay and 3 months half pay. j) Agency Labour The Trade Union side has been extremely concerned about the increasing use of agency labour and the failure of the Employers side to recognise its impact on direct employment levels. The Trade Union side therefore proposes Joint Secretaries Guidance on agency labour, which recognises the impact: On direct labour numbers 13

14 On apprentice numbers On the recruitment and retention of Local Authority Craft and Associated employees On directly employed staff who are frequently paid less than agency labour staff. And finally, agreement that agency labour should only be used as an absolute last resort. k) Stand by Allowances A minimum standard rate for stand by payments. This rate should not impact on local agreements where the payment is in excess of any nationally agreed minimum rate. l) Storage of Tools and Clothing A 5% increase to tool allowances. A 5% increase to storage of tools and clothing allowances. m) London and Fringe Area Allowances An increase in London and Fringe Area allowances to reflect the rise in public transport costs. n) Common Craft rate There should be an update on the establishment of a working party on the subject of a Common Craft rate. o) A major revision of the health and safety requirements included in the Red Book To ensure that all Local Authorities maintain a consistent approach and no workers health is damaged or their safety threatened by inadequate working practices. 12. BANK HOLIDAY TO MARK THE QUEEN'S DIAMOND JUBILEE As a day of national celebration, and in recognition of the hard work undertaken by Building Craftworkers and their low pay, the Trade Union side believe it to be imperative that workers are granted the Queen s Diamond Jubilee on Tuesday, 5 th June 2012, as a day of paid leave. The trade union side is content that the Bank Holiday to mark the Queen's Diamond Jubilee has been agreed as an extra day of holiday separate to the normal holiday entitlement. 14

15 13. SUMMARY The Trade Union side regrets the Employers statement of the 8 th July 2010, asserting that the 250 pay award for public sector workers will not be awarded; we hope to see this decision reversed. The Trade Union side remains committed to the continuation of the JNC Red Book. The Trade Union side recognises that the construction industry has been through one of the worst recessions in history but is encouraged to see signs of recovery. This year s pay settlement must be set against the backdrop of economic recovery alongside increasing living costs. If the Employers side refuses to offer any pay increase for the period this would effectively mean a pay cut for all Craft and Associated Employees. Pay rates for Local Authority Craft and Associated Employees continue to lag behind comparable workers in the rest of the construction industry. According to ConstructionSkills nearly 43,000 new entrants will be needed each year to match forecast construction output growth between Skills shortages will increasingly impact on the ability of Local Authorities to recruit and retain quality employees. According to the Local Government Association s own figures there will be a shortfall of 5,200 apprenticeships set against the LGA target of 15,000 apprentices by Local authorities must take urgent steps to address this deficit. Guaranteed recognition of Union Learning Representatives, with time being given to staff to train. 15