Public sector workers to strike over pay

Around 600,000 local government workers have voted to strike over pay, public sector union Unison said on Monday, adding to fears that higher living costs may spark an hard-to-control inflationary spiral.

Unison said workers in England, Wales and Northern Ireland voted by 55 percent to 45 percent for a programme of sustained strikes after rejecting a 2.45 percent pay offer. Workers in Scotland are also considering industrial action.

The strikes, disrupting services from education to garbage collection, will add to the woes of embattled Prime Minister Gordon Brown whose Labour party faces the risk of defeat in the next election due by May 2010.

The prospect of higher pay settlements being forced through will also worry Bank of England policymakers who fear that big jumps in wages will spur inflation higher at a time when it is already running at its highest in more than a decade.

"This is a solid vote for action and a clear message to the local government employers that our members are willing to fight for a decent pay rise," Unison chief Dave Prentis said.

"They are fed up and angry that they are expected to accept pay cut after pay cut, while bread and butter prices go through the roof."

SUMMER OF DISCONTENT

Unison, which represents more than a quarter of the country's 2.9 million local government workers, said its negotiating team will decide on Tuesday what action to recommend to its national strike committee.

The government and Bank of England policymakers have stressed the importance of maintaining wage discipline as worries grow that inflationary pressures may become entrenched.

Inflation rose last month to 3.3 percent, its highest level since the Labour Party came to power in 1997, and the public's perception of how fast prices are rising is at a record high.

"The country faces a summer of strikes and cuts to local services," said Eric Pickles, local government spokesman for the opposition Conservatives - the party seen most likely to win the next election.

Labour gets much of its financial and grassroots support from the trade unions, but has risked the ire of the public sector workforce by holding firm to a policy of pegging wage deals to the 2 percent inflation target.

Unions have argued that public sector pay is not a big contributor to the country's inflation problem.

The Local Government Association which represents local authority employers warned strike action and higher pay would eventually translate into poorer services.

"If the pay settlement is set any higher, then councils will be forced into making unpalatable choices between cutting front line services and laying off staff," said Brian Baldwin at the LGA.