Brown warns that economic storm is not over

Sir_Humphrey

Let's put it this way; six months ago our top brass were banging on about "more for less". Now they are talking about "less for less".

I suspect that there will a growth in employment after the election...if you don't mind working for Jobcentre Plus.

Really2

and confirmed a pay freeze on senior public employees

Well that is a 2-3% cut in real terms.

I have heard on the public sector grapevine when the axe starts to swing anyone with over 20 years service will not get made redundant or possibly can't get voluntary either due to the cost.

Really2

Sir_Humphrey wrote: »

Let's put it this way; six months ago our top brass were banging on about "more for less". Now they are talking about "less for less".

What, instead of wanting you to do more for less money they want you to do less for less money?
You have got to love the public sector top brass.:)

Lance

To me, the difference between Brown and other politicians both past and present is that he actually genuinely believes he has done a good job and will 'save' our nation. The mans ego is astounding!

Sir_Humphrey

Really2 wrote: »

Well that is a 2-3% cut in real terms.

I have heard on the public sector grapevine when the axe starts to swing anyone with over 20 years service will not get made redundant or possibly can't get voluntary either due to the cost.

The only people who would accept voluntary terms are the old timers. If you make younger staff compulsorily, then in ten years government has to pay people a lot more to bring in experienced people (and compulsory redundancy is more expensive anyway). Also pay would compensate for lower job security via market forces.

I don't know about elsewhere, but the usual tactic for the civil service is natural wastage. Relocation is another tactic, but in practise the best/most experienced people end up staying in London because you have to have continuity in expertise.

"Efficiency savings" have a nasty habit of costing rather than saving money.

bernard_shaw

lemonjelly wrote: »

1 keeping people in jobs & creating jobs for the out of work puts money in pockets.

2 Money in pockets = rising tax receipts for the exchequer + consumer spending on the high street.

3 Increased Consumer spending = job creation & investment. Go to 2.

Easy this economy malarky!

Only if those jobs in (1) create value and wealth. (Hint - Not the same thing as money.)

If all that these 'jobs' create is (demand for) money (or an increase in the velocity of money), then this is a road-to-hell recipe for a stagflationary wage/price spiral.

See my sig.

Really2

Sir_Humphrey wrote: »

The only people who would accept voluntary terms are the old timers. If you make younger staff compulsorily, then in ten years government has to pay people a lot more to bring in experienced people. Also pay would compensate for lower job security via market forces.

Well from what I hear from HR departments is any one +20 years service wont be going due to it not being cost efficient.
I am sure they can cut jobs that do not require much experience or otherwise how did anyone ever get in to the public service.
Not sure how you would get to your wage inflation scenario ask any ex trained car manufacturer in the midlands (or any area of industry that has seen big job losses) how much more they earn now compared to 10 years ago.
I bet a lot of MG rover staff are still on less than what they used to earn.

Old_Slaphead

Sir_Humphrey wrote: »

I don't know about elsewhere, but the usual tactic for the civil service is natural wastage. Relocation is another tactic, but in practise the best/most experienced people end up staying in London because you have to have continuity in expertise.

What about outsourcing and getting the private sector to do the dirty work ?

Sir_Humphrey

bernard_shaw wrote: »

Only if those jobs in (1) create value and wealth. (Hint - Not the same thing as money.)

If all that these 'jobs' create is (demand for) money (or an increase in the velocity of money), then this is a road-to-hell recipe for a stagflationary wage/price spiral.

See my sig.

Inflation is a lot more complex than your sig would suggest.

I can think of plenty of "non-productuve" private sector jobs. EAs spring to mind straight away.

Increasing inflation would be a good thing if you are suffering from deflation. This is not the 1970s. Stop fighting the last war.

fedupfreda

Lance wrote: »

To me, the difference between Brown and other politicians both past and present is that he actually genuinely believes he has done a good job and will 'save' our nation. The mans ego is astounding!

No, IMO he just learnt really well from the delusional fantasies of his predecessor - and now, like TB, Gordy really believes he is the next Messiah...:eek:

If either of them were half as good as they cracked themselves up to be, we'd be in a much better place to ride out this mess, I believe. :mad: