The Public Services Commission (PSC) has been negotiating with union representatives over recent months in respect of a pay settlement for PSC employees for the year 2016-17.
The PSC and the unions were unable to reach agreement and the matter was referred for independent binding arbitration in accordance with the PSC Arbitration Agreement.
The arbitrator has determined that the pay award is 2.2%, with the new rates of pay taking effect from 1 April 2016.
PSC Chairman John Shimmin said:
‘Government offered a 1% pay increase, while the unions sought 4.4% on behalf of their members. Extensive negotiations failed to find an agreement. The independent arbitrator has set the pay award at 2.2%, which amounts to an increase in salary costs of circa £2.95 million.’
He added:
‘Expenditure projections within the Treasury’s Medium Term Financial Strategy are based on any increase in pay costs being capped at 1%. This means that the unbudgeted portion of the current pay award, approximately £1.6 million, will have to be funded by Departments from within their existing budgets.’
