The States have offered an improved deal to manual workers – revealed this morning to be 2.75%, 0.35% above the original RPI deal for 2006, and RPI for 2007 – and will extend it to the other the pay groups who have not yet settled on a wage increase – teachers, civil servants and fire fighters. Under the new Public Finances Law, any increase beyond the Business Plan budget has to be met within existing funds instead of being topped up by the General Reserve. That could mean efficiency savings, leaving vacant posts empty or service cuts. The proposed deal has not yet been agreed, but officials hope it will end the pay dispute and prevent threatened strike action by manual workers.
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