Regional pay would cut £660 million from Welsh economy

Wales TUC study shows devastating effects

Public services, not fat cats

The introduction of regional pay for public sector workers would cost the Welsh economy £660 million according to a report commissioned for the Wales TUC.

The Con Dem government is considering cutting the pay of public sector workers outside London and the south east of England down to the level of the worst paid in the private sector in their region. On average that would mean a cut in pay of 10% for workers in the public sector in Wales, women could lose as much as 18% of their wages.

The Wales TUC reports that regional pay policy would cut a further £660 million from the Welsh economy as workers’ spending power is reduced at a cost of 9,300 jobs. Even though some private employers support the idea because they could then pay their workers less, the private sector would lose out as the local economy shrinks.

The Wales TUC found that even if the unlikely claims of the Con Dems were true, that it would create more jobs in the private sector, then only 229 jobs would be created and £156 million would be taken out of local economies.

The idea is so unpopular that even the Welsh Conservatives are opposed to regional pay.

But like benefit cuts, PFI, privatisation and a load of other Tory policies they can point to Labour blazing the trail – the last Labour government introduced regional pay into the Ministry of Justice.

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