Miliband: Dealmaker

Ministers and unions have agreed on a new set of principles to guide public service pay deals.

Cabinet Office minister David Miliband announced on Thursday that the prime minister's Public Service Forum had reached a deal on ensuring consistency in negotiations across the government sector.

He said factors including skills training, equal pay and pensions will all be taken into account, along with a commitment to performance-related pay and flexibility.

The forum was established in 2003 in order to bring ministers, employers and unions together to discuss employment issues following disputes over "two tier" workforces and inconsistent practices.

The government wants to professionalise the public services by introducing performance incentives and higher productivity, while unions argue that this should be matched by salaries closer to private sector levels.

'Common framework'

As chairman of the forum, Miliband brokered the latest deal which he claimed will provide a "common framework" across the different negotiating bodies.

"The principles support the drive for pay and workforce modernisation to deliver fairness at work and better, more efficient public services," he said.

"Higher quality jobs and improved working lives should go hand in hand with greater workforce flexibility to improve citizens' experience of local services.

"They will make a real difference on the ground as they help to shape pay review body evidence, pay remits and collective bargaining across the public sector."

TUC general secretary Brendan Barber added that the deal was proof of the success of the partnership approach.

"This is an important development. These are the first set of pay principles developed for the public sector as a whole," he said.

"They are a further practical result from the establishment of the Public Service Forum by the government in 2003."