Unions say government pay offer below expectations

The Manx government has offered government workers a three-year pay deal

A three-year pay deal offered to public sector workers on the Isle of Man falls "well below" expectations, two unions have said.

The deal would see members of employed under the Public Services Commission (PSC) given a 2% rise for the current financial year and for each of the next two.

In a letter to unions, the Manx government said the offer, which sat alongside conditions based on the rate of inflation, came at a time of "significant financial pressure".

Mick Hewer of Prospect said the below inflation offer would leave its members worse off, while Unite's Debbie Halsall said it was "smack in the face" for workers.

'Significantly worse off'

The unions represent workers across government including civil servants, education support staff and manual and craft worker.

The offer would see a 2% increase backdated to 1 April, followed by a second 2% increase for the financial year 2025-26.

A further 2% rise, due in 2026-27, would become void and be renegotiated if the March 2026 inflation rate was 1% higher or lower than 2%.

While inflation has fallen to 2.2% on the island, it currently remains above the 2% on offer.

Ms Halsall said that meant that the offer on on the table amounted to "zero".

She said the government was "certainly not looking after the people who are on low pay".

"To offer 2% while putting your tax up 2% is a smack in the face, again," she added.

Mr Hewer said while he could see the benefits of a three-year deal, he wanted "more protections around what is being offered".

He said, combined with the 10% increase in the higher rate of income tax implemented in the 2024-25 budget, the offer would leave some of the union's 2,500 members "significantly worse off".

The Manx government has been contacted for a comment.