Wednesday, 6 July 2011

Shropshire council sacks all staff and hires them back for less

Shropshire Council has fired all 6,500 of its employees, effective September 30th, but hired them back the next day provided they accept a 5.4% pay cut. If they don't accept the deal they are dismissed without compensation.

Way to go Shropshire. That's austerity!

However, it's not really much austerity. Also it applies the same percentage cut to all staff, whereas the higher earners should really be hit harder; not least because they can afford it.

This blog therefore offers up the "Nationalist Formula" for public sector pay cuts:
new salary = (old salary) - (old salary/1000)^2
ie, take the old salary, eg £25,000 pa, divide by a thousand, that makes 25, then square it: that's £625, and subtract that from the original pay, making £24,375 making a pain-free 2.5% cut in pay.

Of coure it gets more painful as you ascend the pay scales. Here are some illustrations:
    Old pay     Pay cut       New pay     %Cut
    -------     ------        -------     ----
    £20,000     £400          £19,600     2%
    £30,000     £900          £29,100     3%
    £40,000     £1,600        £38,400     4%
    £50,000     £2,500        £47,500     5%
    £100,000    £10,000       £90,000     10%
    £200,000    £40,000       £160,000    20%
    £500,000    £250,000      £250,000    50%
    £1,000,000  £1,000,000    £0          100%
We probably don't need to worry about the £1 million earner losing everything. Nobody in the public sector should be making that amount off our taxes.

The only problem is: Shropshire's actions are almost certainly illegal. They can't just sack staff without compensation. Their actions are likely mere bluff designed to get people to sign away their rights.

Watch this space; for legal action mainly.

3 comments:

Anonymous said...

> Shropshire coincil sacks all staff and hires them back for less

What's a coincil?

Nationalist said...

The u and i keys are far too close together, don't you think?

Pedant Reformist Institute said...

To anon - clearly a coincil is a council that is fused with topics of finances and wages, as the article suggests.

Just like pixel is a shunting of two separate words to make a new one - coincil neatly conjoins the word council and the word coin, which as we know is a form of monetary exchange.

Clearly, the author of this piece made a Freudian slip and came up with genius as a result.

Well done Nationalist, and also, well done on the articles.