There is a nationwide war on public sector pay. Unfortunately not here, but in the UK, by David Cameron, Britain’s new Prime Minister. Please consider David Cameron declares war on public sector pay.
David Cameron has vowed to crack down on “crazy” bonuses paid to civil servants as the new Government seeks to reduce the costs of the bloated public sector.
Out of control hand-outs, which this year will be paid to three-quarters of senior civil servants, are to be restricted to high performers.
Under the terms of Whitehall contracts signed by Labour ministers at the height of the recession, bonus payments can not be cancelled by the incoming Government.
In future, however, windfalls across the public sector will be restricted to employees who have performed “exceptionally well,” with only the top 25 per cent eligible for the payments.
A separate commission will limit pay for the heads of state bodies to no more than 20 times that of staff on the lowest salaries.
And a taskforce, to be launched on Monday, will begin examining all Government expenditure to seek ways to cut back on “irrational” spending.
It will identify “poison pills” – spending commitments entered into during the “dying days” of the last government.
George Osborne, the Chancellor, will within days set out the broad areas where he anticipates he will be able to find £6 billion in efficiency savings.
By cutting mandarin bonuses by 65 per cent, £15 million a year will be saved for the public purse.
While the figure will not make a significant debt in the £167 billion deficit, Conservatives say that the bonus payments are symbolic of the lack of rigour in Whitehall under the last government.
A No 10 source said that cancelling the pay-outs should be seen as an “emblem” of the new coalition Government’s desire to get spending within the public sector under control.
A far better idea is to simply get rid of public unions period. Public unions serve no purpose, they only serve their own pocketbook.
Mike “Mish” Shedlock
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