PACR – One Year On

It’s been over a year since the R&C GEC voted to recommend HMRC’s offer of ‘Pay and Contract Reform’ (PACR). It was a split vote in the GEC, with concerns raised around a number of points especially the imposition of evening and weekend working across Customer Services Group (CSG) and that the detail on a number of issues yet to be agreed. To address these concerns, commitments were given by the negotiators that things would be resolved quickly and in a way that would be fair to members. The negotiators were also at pains to say this was the best members would get, and that rejecting the PACR offer would mean members getting a 1% or even 0% pay rise. Ultimately there was a slender majority in favour of supporting the PACR offer.

Members of the Broad Left Network were universal in opposing the PACR offer. While we recognised that some individuals would gain, we opposed gains being made to the detriment of other members. We knew that the PACR offer would have far reaching implications that would become clear over time. Sadly time has proven us correct.

The ballot

What happened after the GEC vote was inevitable: HMRC and PCS both pushed for a ‘yes’ vote. Criticism of PACR was marginalised and silenced as far as possible. Branches critical of PACR weren’t able to put out their views through any official HMRC or PCS channels, ensuring their reach was constrained.

Notably, HMRC encouraged staff to join a union to have a vote on the offer. PCS were overjoyed and made a big deal of the number of people joining PCS in early 2021. The exact figures are difficult to know, but it’s estimated that 4,000 people joined PCS to vote. But that’s the problem – many joined only to vote, not because they perceived PCS as representing them. In the three months after the PACR ballot HMRC lost in the region of 3,000 member, equivalent to 75% of the joiners. Most of those people never paid any subs to PCS.

Some of those 3,000 people will have been long standing members, maybe even activists, that resigned in disgust with the GEC recommending the PACR offer. We understand that strength of feeling, but resigning doesn’t change things. We would rather than disgruntled members stay in PCS and use their vote for Broad Left Network candidates in elections, or even stand on the Broad Left Network to provide an alternative on the GEC.

The consequences

A criticism of PACR was the lack of detail in some areas. There were various agreements in principle. Other parts weren’t even going to be negotiated until after the offer was accepted. This came with significant risks for PCS members. If HMRC decided the principles were incompatible with its vision, what was PCS to do about it? The GEC had already asked members to vote for the offer and it had been accepted. PCS had effectively tied its hands behind its back.

We don’t get to hear about the negotiations taking place. But we do get to see the consequences. There’s now a list of issues with the implementation of PACR.

It makes sense to start the list with one of the most contentious , Special Working Arrangements. These were supposed to provide members that can’t work to the pattern expected by CSG. Yet these have been rejected for part time staff, staff with disabilities, staff with caring responsibilities. A review agreed between PCS and HMRC hasn’t changed the process.

This flows into the operating hours for CSG. It’s nonsensical that CSG has mandated that no staff, not even the staff that aren’t customer facing, are allowed to officially start their working day earlier than 07:45 There’s no sign of CSG changing its stance and it’s unlikely to, as the CSG working pattern is used as an excuse for refusing Special Working Arrangements.

One of the celebrated aspects of PACR is the ability for everyone to work from home for at least two days a week if they are in a role that allows that. Reality is now setting in. Part time workers are being told that the two days is pro rata. The two days minimum is being treated as a maximum in a lot of areas.

The future of the AA grade is still unclear. PCS say that there’s still AA work to be done. But it’s difficult to see why HMRC would be happy for two staff sat next to each other earning the same pay but have one with lesser responsibilities.

Other issues include:

• The replacement for the MIS agreement;
• Trainee pay;
• Allowances;
• Which aspects of PACR apply to staff in Surge.

Looking ahead

This is the final year of the pay rises. Members will receive an average of 5% this year. Inflation in 2021 already matched that and this year inflation is expected to be even higher, driven by energy and fuel costs. The recent activist email for the national campaign got one point exactly right: “Irrespective of the pay deal, because of the cost-of-living crisis, your costs are rising far faster than your pay.”

Soon there will be an indicative ballot on pay and pensions. Broad Left Network members are encouraging everyone to use their vote and to vote for action. However we’re skeptical that the current Left Unity led NEC are serious about wanting to win the ballot. During their tenure PCS has lost 100s of reps. Branches aren’t given the tools to contact their members directly. Branches weren’t consulted on the timing of the ballot. No realistic plans are in place to be able to campaign amongst members that are still working from home due to COVID measures.

What we call for

Activists in R&C group have the urgent task to address the many issues resulting from PACR and fight for a pay rise. There’s no doubt that PACR will be a key point at Group Delegate Conference 2022. But it’s difficult to see how there can be robust debate until branches and activists are properly appraised of the current position and able to share experiences. Conference isn’t the place for that to take place. We also face the risk that dividing PACR into piecemeal matters in a variety of motions will fail to address matters properly.

To this end Broad Left Network members are calling on branches to write to the GEC to organise an activist meeting. We need an honest and thorough stocktake by the GEC of where we are with PACR. This needs to be provided to all branches in advance of the activist meeting so that we can have an informed discussion and debate amongst branches of what’s needed, including the potential for legal challenges and industrial action.

The Broad Left Network will be holding an open meeting – PACR one year on – via Zoom. Please note, we’re rearranging the date of this meeting at present and will confirm details shortly.