Unite challenges Govt on pay claim, insisting ‘no negotiation has taken place’

Unite the Union has challenged the Gibraltar Government’s handling of the 2025 public sector pay claim, adding “no negotiation has taken place”.

The union was reacting after Chief Minister Fabian Picardo said on Friday that public sector workers should not expect “a double-digit pay rise or anything of the sort”, stressing the need to balance any increase against other government spending obligations.

Mr Picardo made the comment in a statement after a “constructive” meeting with public sector union representatives ahead of the Budget session on June 30.

The Government is considering a percentage pay increase for the public sector as a whole, rather than a pay rise based on a fixed sum.

It will make any announcement in that respect during the Budget session in Parliament.

But on Monday, Unite voiced disappointment with the Government’s position and said it would ballot its members after the Budget announcement, adding a rejection of any pay announcement would be a mandate for industrial action.

Unite said its pay claim submitted in January went further than just the public sector and included many aspects of the private sector such as the minimum wage, a longstanding claim for a Gibraltar Living Wage and tackling the “prolific use” of zero hours contracts that are covering permanent roles.

Since submitting the claim, Unite and the joint unions have attended three meetings, of which the first was introductory.

In the second meeting, the Chief Minister provided some key financial information and the meeting was then handed over to the Chief Secretary due to the Chief Minister having to attend to treaty matters, Unite said.

Unite and the other joint unions were invited to present final views on the potential public pay solution and it was understood that the joint unions would receive an offer at the next and final meeting.

“That meeting took place on Friday June 20, where the Chief Minister stated to those present that this was not a negotiation and that the government does not offer but announces any increase, with no proposal presented at the meeting and that the announcement would take place at Budget on Monday June 30,” Unite said in the statement.

“Unite has always understood that this was a negotiation, where figures would be discussed prior to budget which would then be put to a ballot of members post-Budget.”

“Whilst the opportunity has been provided to develop the themes of the Unite public sector pay claim, negotiation is a key element of the engagement with HMGOG, and this has been sadly lacking.”

As part of the Pay 2023 negotiations, an offer was presented to Unite in advance of the Budget, which was the two-year pay deal that members were balloted on and accepted.

Whether the pay proposal is a percentage increase or a monetary amount in “irrelevant” as to whether the Government makes that offer pre-Budget or announces it at Budget, Unite said, adding the latest developments were “a backwards step” in the public sector pay negotiation process.

“The union is very disappointed with HMGOG’s stance in our last meeting,” said Donovan Correia, Unite Regional Officer.

“Since we submitted our claim, all involved have been of the understanding that this was a negotiation.”

“In last Friday’s press release from HMGOG, the Chief Minister also referred to it as a negotiation and that it was constructive.”

“However, when we met the Chief Minister that same day, he stated that it was not a negotiation and that the government would announce the increase at Budget which steps back from the position of Pay 2023.”

“This is at odds with the idea of this being a negotiation and leads Unite to question whether the process was somewhat meaningless notwithstanding that there was the opportunity to present the views of the Unite membership to HMGOG.”

“The union will now be gearing up to ballot the whole of the public sector membership following the Budget announcement on Monday as to whether members accept the pay announcement or whether they reject.”

“An overall rejection will be a mandate for industrial action.”