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Ministry of Defence

To: All members 1:10)

25th January 2010 MoD/MB/7/10

Dear Colleagues

MoD pay update 23

Pay petition

As part of our ongoing pay campaign in the Ministry of Defence, we asked members
to sign a petition on the website asking “the Prime Minister to
personally intervene to stop the Ministry of Defence from slashing the pay of their
lowest paid workers.”

The petition closed on 14 October 2009 by which time over 1500 members had
signed the petition. We have noted that it has taken over three months for a
response to be delivered from the government, but those members that signed the
petition should now have finally received an email response personally from the 10
Downing Street website.

The response (copied below) regrettably does nothing to try to resolve our dispute
on pay, and instead merely restates the department’s position regarding the cut in
pay and pensions of staff in the E1 and E2 Pay band.

The response is also misleading when it claims that “Everyone above the new pay
band maxima has been given pay protection”. This is partly true, but this pay
protection is only guaranteed for the duration of the pay award and effectively
expires in July next year.

Our pay campaign therefore will now be stepped up and will continue until we have
achieved fair pay for all of our members.

We continue to press the department to work with us to resolve the dispute on pay.
This week PCS negotiators met with the Minister for the Armed Forces, Bill Rammell.
He gave us an assurance that he would look into the ongoing dispute.

We very much welcome this and we have made clear to him that we believe a
negotiated settlement is possible if the will exists to find an acceptable way forward.

160 Falcon Road London SW11 2LN Tel: 020 7801 2645 020 7801 2645

As ever we will keep members informed of any developments through regular
updates and briefings.

Grievance Hearings

A number of members have contacted our union regarding the forthcoming pay
grievance hearing, over 200 of our members have lodged a grievance and we
encourage all members to attend their respective hearing.

We have agreed with the Department that all of the grievance hearings will be held in
Main Building, London. They will take place on Friday 29th January 2010 and
Tuesday 2nd February 2010. The hearings will be collective and will deal with a
number of similar grievances at the same time.

PCS will provide full representation at these meetings by either Chris Dando or KC
Jones. Members are not required to make representation but are encouraged to
make any points they wish to those responsible for cutting their pay.

It is important to note that each of these grievances has been submitted under the
recognised grievance procedure, therefore all travel and subsistence costs fall to the
department and members intending to travel should ask their Line Manager to
arrange payment of these costs.

In the meantime we are also preparing our test cases for Employment Tribunal
(which will proceed if the department rejects our members’ grievances) and a case
management discussion was held with a Tribunal chairman this week. Following this
positive hearing we anticipate moving quickly to formal legal action once the
grievance hearings have been held and the formal legal hearing is likely to be held in
the Spring.

Winning justice for every member on pay remains our top priority and our dispute will
continue and escalate until this is achieved.

Yours sincerely

Paul Barnsley Chris Dando KC Jones

Group Secretary Group President Group Vice President

160 Falcon Road London SW11 2LN Tel: 020 7801 2645 020 7801 2645

MoD pay - petition response from the Prime Minister
We received a petition asking:

“We the undersigned petition the Prime Minister to personally intervene to stop the Ministry
of Defence from slashing the pay of their lowest paid workers.” Details of Petition: “The
MoD intends to reduce the pay band maxima for non-industrial civil servants at E1 and E2
pay bands. This will take effect from 1 May 2009. It is completely unjust to penalise the
lowest paid staff in the department by cutting their pay in such a manner. The MoD propose
to cut consolidated – and contractual – pay and replace it with a non-consolidated allowance.
It is equally wrong to force thousands of hard working staff to accept non consolidated pay
awards and also miss out on proposed additional progression payments based on length of
service that staff with less service will receive. The proposed pay ‘protection’ allowance is
only guaranteed until 2010 and this will have a detrimental impact upon their future earnings
and pensions. I ask that you personally intervene in this process so that we can find an
acceptable solution to this problem. I know that my union, PCS, has proposed a number of
ways to resolve this issue and I would hope that my employer would seriously consider these.
I hope that you will agree that low paid government employees should not have to take a pay

Read the Government’s response

MOD increased the bottom of the Band E pay bands in 2008 by around 9% and they will
continue to rise by between 3% and 6% in 2009 and 2010.

When drawing up proposals for the 2008 pay award, MOD determined that the pay levels for
bands E1 and E2 were the highest in Whitehall and out of kilter with the wider market. In
addition, MOD has very few recruitment and retention problems at Band E. The MOD took a
decision to set new pay band maxima with effect from 1 May 2009. Everyone above the new
pay band maxima has been given pay protection. In implementing the new limits, in August
2008 the MOD gave all those above the new maxima a 2% pensionable allowance as well as
a 0.5% lump sum cash payment. On 1 May 2009 MOD converted the difference between the
new pay band maxima and previous salary into a protected pay allowance which will
continue to have all the characteristics of the individual’s pre-existing pay and so will be
reckonable for pension, overtime and promotion purposes. In addition, the 2% allowance
was added to the protected pay allowance. As a result no Band E will lose money and the
pensionability of their pay has been protected.

While MOD cannot give a guarantee about anything beyond the life of the current pay
settlement, they have offered to work with the Trade Unions during the period of this award
to examine the pay and grading of this grouping in detail and to consider with them options
for the way forward.

160 Falcon Road London SW11 2LN Tel: 020 7801 2645 020 7801 2645