Unite says budget has progressive measures but more work remains

Unite has broadly welcomed the Chief Minister’s final budget speech this week, saying it includes progressive measures for workers in both the public and private sectors, while adding that some issues remain unresolved.

The union said the budget delivered on several key areas for its members, though it maintained that further dialogue would be needed on outstanding points.

“I would firstly like to congratulate the Chief Minister on delivering his final Budget speech which contains a number of progressive elements that will benefit those living and working in Gibraltar not just now, but into the future,” said Stuart Davies, National Officer for Unite Gibraltar.

“The public sector pay proposal, whilst not delivering on all that Unite were seeking is certainly unprecedented and delivers on some of the commitments within Unite’s 2025 Dispute Resolution Agreement around the recovery of real terms losses in pay, which members will now be balloted on.”

“There do remain some points for further dialogue and clarification, however the automatic and annual mapping of the Gibraltar minimum entry salary to the UK at 1st April each year is welcomed and follows the agreement Unite signed with HMGOG last month on this matter for the period 1st April 2025 to 31s March 2026.”

Mr Davies said Unite had not agreed in principle to any moratorium on sectoral claims and said such a proposal had been rejected by the union.

“Despite the contents of the Budget speech, Unite have certainly not agreed in principle a moratorium on sectoral claims and such a proposal was rejected by Unite,” he said.

“The union has repeatedly stated that it wants to concentrate public monies available into public sector pay, but cannot be restricted from departmental or sectoral claims that are meritorious and well founded.”

“Also whilst the negotiation process has been markedly improved from the 2025/26 engagement, it has still fallen below what Unite would expect from a robust negotiating procedure which has left the union with outstanding points, matters of clarification and a requirement for further dialogue.”

On the minimum wage, Unite said the increase to £10 per hour would provide a boost to the lowest-paid workers in Gibraltar, while arguing that more action was still needed in the private sector.

Mr Davies said the union had long argued that the minimum wage has been too low.

“However it would be churlish to not welcome the £10 per hour minimum wage which will provide a significant boost to lowest paid working in Gibraltar, although Unite maintains that more needs to be done in the private sector, around the Living Wage, improved minimum employment standards and tackling Zero Hours Contracts,” he said.

Unite also welcomed the equalisation of the pension age for men to 60, bringing it in line with that for women.

Mr Davies said the move “cannot be underestimated”.

“When almost every other country in Europe is increasing their state pension ages for both men and women, in some cases to almost 70, then the gravity of this announcement is highly significant,” he said.

“It is reversing a trend across other developed countries of making those that contribute towards funding pensions, work longer to receive that pension.”

“Unite have long campaigned for this equalisation and HMGOG should be applauded for this announcement.”

The union said it will now begin consulting members and balloting them on the public sector pay proposals.