Cornwall 'set to lose £11.5 million' due to plans to freeze key workers' pay
The TUC union says this is no way to repay the people who have kept the country going through the pandemic
It is claimed Cornwall will lose £11.5 million if government plans to freeze key workers' pay go ahead.
The TUC union estimates staff in the Truro and Falmouth areas will be worst-hit, to the tune of £5.5 million.
The announcment that public sector workers, of which the Duchy has more than 15 thousands, would not receive a pay rise was made by the chancellor in November.
The TUC says that is no way to repay the people who have kept the country going through the pandemic.
What do the figures show?
Analysis by the trade union federation has calculated the expected hit to Cornwall's economy by looking at the difference in economic activity if key worker pay settlements go ahead in full, compared with the decline in economic activity if the Chancellor implements the planned 'pay cuts'.
This means that for the year April 2021 to March 2022:
The economic hit for Cornwall is £11.5 million
Workers in Truro and Falmouth would suffer the most, with a loss of £5.5 million
Combined, the south-west region will suffer a total loss of £142 million
The hit for England is -£1.7 billion
What does the TUC want to see?
Despite assurances from ministers that key workers would be recognised for their enormous contributions and sacrifices throughout the pandemic, the TUC says millions of key workers will lose out.
The union is encouraging the chancellor to reconsider, and to commit to policies that will improve pay and conditions for all key workers.
It says these should include:
Guarantee that all outsourced public service workers get a pay rise so that they earn at least the real Living Wage
Action to ensure that every key worker in every sector gets a pay rise, including raising the national minimum wage to at least £10 per hour
Fair pay rises for key workers in the public sector - with a plan to restore wages to their levels before austerity
Ban zero-hour contracts - and use the long-awaited employment bill to strengthen rights to fair working conditions for key workers
"Key workers have kept Cornwall going through the pandemic. MPs clapped for them, but their applause will ring hollow if they support the Chancellor as he continues cuts to their pay. That is no way to thank them.
"For too long, key workers have been poorly paid, on insecure work contracts and rarely recognised by the government for the vital role they play in our communities.
"But we also know that boosting key worker pay helps everyone.
"When a key worker spends their wages, it goes straight into the local economy, and comes back into other people's pay packets.
"From shop staff, factory workers, delivery drivers, care workers, childminders, hospitality workers - right across our economy, we are all connected.
"So if the Chancellor is serious about getting the country back on its feet, and levelling up our communities, he needs to significantly improve the pay and conditions of all our key workers. Not cut in a time when we need it most".
TUC Regional Secretary, Nigel Costley