Public sector pay row proves neither Brown or Cameron have the stomach for a real fight

By David Higgerson on Jul 7, 09 10:09 PM

Did you receive a pay rise this year? If you work in the private sector, the answer is probably no. In fact, you're probably just grateful to have a job.

That's a fact of life in a recession. This time last year, we were just beginning to realise how bad the recession would be. Since then, tens of thousands of jobs have been lossed, with many more people on shortened-hours or reduced pay.

And in Downing Street, we have a government which insists it is the only party to deal with the recession - the only party to make tough decisions.

Then, in Prime Minister's Questions, we have David Cameron insisting that, actually, he's the guy to rescue the country.

So what happens when both parties face a suggestion about spending which won't be popular? Well, let's look at the evidence.

On Sunday, Steve Bundred, the Audit Commission's chief executive, said the public sector should have to brace itself for a pay freeze as the Government tries to balance the books.

At first, it seemed as though Alistair Darling seemed to be prepared to take the idea on bored - pointing out that public sector pay had to be "fair" in relation to the private sector.

Less than 24 hours later, and facing the predictable backlash from the unions, both Darling and Cameron were rushing to insist the public sector need not worry.

Gordon Brown's spokesman said: "The Prime Minister shares the Chancellor's view that public sector pay has got to reflect prevailing conditions, and in particular reflect the fact that inflation has come a long way down. Of course, we have got to be fair to people who work in the private sector as well as those in the public sector. But contrary to speculation that does not mean there are any plans to reopen multi-year deals."

David Cameron, meanwhile, also seems keen to be loved by the public sector. According to The Times, Mr Cameron, interviewed on the Radio 4 Today programme, acknowledged that pay settlements for public sector workers would be "much tighter" as the public finances were rebuilt. But, he said, a Conservative government would stick by the existing system of public sector pay review bodies.

So, in other words, a pay deal for the public sector which was introduced when times were good will stay in place, even when times are bad.

How would that work in the private sector, if the money ran short? That's right - you'd be out of a job.

The unions are always keen to parrot out the professions included in the public sector that the public respect: The police, the fire services, nurses, doctors, social workers (although the latter gets dropped every time a Baby P case crops up) and so on.

But these agreed pay deals cover many more posts that just the headline-grabbing ones. Press officers, accountants, tens of thousands of middle managers - in fact, all the sorts of jobs you'd expect in the private sector.

Another thing the public sector workers look forward to is a bloody good pension. Again, when the pension pot dries up in the private sector, what happens? It's bye-bye to the final pensions for all.

So when an expert from a body like the Audit Commission takes about the need for a pay freeze in the public sector, our politicians need to rise to the challenge. These are hard times, unprecedented action is being taken. So why are agreements with the public sector protected?

Brown and Cameron are fighting it out to be seen as the right man to sort out the financial mess we're in. Neither will succeed if they don't take tough decisions - and based on this week's weak words, neither seem prepared to do it.