The public-sector fat cats

NURSES, MIDWIVES and other health workers are told their next year’s annual settlement should limit pay rises to 1.5%, well below the 3.6% official inflation rate, let alone the rise in fuel prices over the last year (as high as 33%).

Most public-sector workers face real pay cuts, but not at the top. Three public ’employees’, Bob Kiley, London transport supremo, Adam Crozier of Royal Mail and John Armitt of Network Rail got over £1 million salary last year. (Network Rail is a private company but gets a £2.5 billion government subsidy). Richard Granger, boss of NHS Connecting for Health got a £285,000 package while Sir Nigel Crisp, former NHS chief executive, pulled in £215,000 a year.

It may seem minor compared to the orgy of increases for private-sector top bosses who now earn at least 98 times more than their firm’s workforce. Since 2000, pay for the chief executives from the FTSE 100 leapt up 102.2% on average whereas the average employee’s pay rose only 28.6%.

Nonetheless 171 public-sector fat cats got pay rises of 8.4% between 2005 and 2006, more than twice as high as the average worker and five times the NHS ‘offer’.