Friday, February 25, 2011

Boris Johnson under fire over excessive city hall pay

London mayor accused by Unison of wasting money as it emerges that at least 20 staff earn more than �100,000

Boris Johnson the London mayor, is under fire over excessive pay at city hall, after it emerged that at least 20 staff earn more than �100,000.

Unison, the public sector union, accused the Conservative mayor of "wasting money" on "bulging management" while the lowest earning staff at city hall have been subjected to a pay freeze.

Johnson, who has made cutting waste and finding efficiencies a signature theme of his mayoralty, has so far failed to scale back his own and other top salaries at city hall. This is despite Conservative colleagues urging public sector pay restraint at the top of local government.

Earlier this week Johnson wrote to staff at the Greater London Authority to hail the decision to axe the chief executive post as part of a drive to put "every penny we can" into making London an even greater city".

He wrote: "That means taking decisive action where we can to reduce unnecessary costs."

The decision to abolish the post held by Leo Boland on a salary of �205,615 took a leaf from government plans to enable elected mayors to assume an authority's chief executive functions.

But the move has thrown the spotlight on the welter of other top-level salaries that still remain at city hall, amid Tory ministers' distaste for local government salaries of more than �100,000.

Johnson earns �143,911, more than David Cameron's �142,500 salary as prime minister. But unlike Cameron who announced after taking prime ministerial office that all ministers in his coalition would accept a five-year pay freeze and a 5% pay cut, the mayor has limited himself and his advisers ? eight of whom earn more than �100,000 ? to the same pay freeze imposed on the rest of staff at the Greater London Authority, some of whom earn less than �20,000.

Seven of his advisers earn more than �100,000 with some, such as Sir Simon Milton, Johnson's chief of staff, earning �127,784. Additionally, Kit Malthouse, his deputy mayor for policing, takes home almost �110,000 when his �53,439 London assembly salary is combined with the �56,430 he receives as chair of the Metropolitan Police Authority.

A further five senior City hall executives earn between �127,000 and �140,000, with a number of other posts also over the �100,000 mark. Unison has calculated that overall, the number of such posts has increased under Johnson's tenure to more than 20. The union also points to the jump between grade 14, which goes up to �85,567, and grade 15, which begins at �102,588.

The restructuring exercise under Boland's watch in 2009, proposed to bring down staffing by 110 to 531 and saw a number of rank and file posts made redundant. Yet the figure now stands at 630 with a heavier management tier, said Linda Perks, Unison's regional secretary.

Perks said: "Far from cutting bureaucracy, Boris has brought in yet another level of directors, paid out a �300,000 pay-off package to Leo Boland, and overseen a growth in highly paid consultants ? while freezing pay for low paid workers. The mayor is defending the bankers and wasting money on bulging management and costly consultants."

The situation at City hall is at odds with the landscape communities secretary Eric Pickles wants to see in local government. Earlier this month, Pickles said that appointments on more than �100,000 a year will, in future, require a public vote by councillors. The changes will be added to the localism bill, which is currently going through parliament.

Asked if Johnson was considering cutting top pay at the strategic authority, a City hall spokesman said: "The mayor and top team salaries have been frozen for the last two years. We have just made a salary saving of �205,000 on the chief executive post and will continue to keep salaries under review in response to budget pressures."

Staff were angered that the lowest-paid workers at City hall were included in a pay freeze in 2010/11, prompting official censure from the London Assembly and a motion urging Boland and the mayor to think again.

The assembly echoed Unison's call for a 4% pay rise for the 58 staff earning less than �23,000, which would cost just �50,000. Boland refused to budge. Unison say the issue is not resolved and it is still considering whether to register a dispute on the freeze.

Transport for London, which Johnson chairs, has also come under criticism for the number of staff earning more than �100,000 as Londoners face rising transport fares.

The strategic transport authority responsible for public transport across the capital has 189 staff earning more than �100,000 in pay and benefits. A TfL spokesman said this represented an 8.5% reduction and that senior salaries have been frozen for the past two years.


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Source: http://www.guardian.co.uk/politics/2011/feb/25/boris-johnson-city-hall-pay

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