The union took a huge membership hit after Ministers ended the 'check off' system in 2015 - but they are bouncing back.
The PCS union has secured a victory against union-busting, after it forced the Department for Work and Pensions to pay millions in damages to the union over sweeping changes to how the DWP handled employees’ union payments.
Ministers have agreed an out of court settlement with the civil service union, entitling the PCS to damages of £3 million for ‘abruptly’ stopping the system of direct deduction of union subs from government workers pay packets in 2015.
The withdrawal of check-off from members in the DWP – which has been ruled unlawful – cut the union’s membership by a quarter almost overnight.
Although PCS went on to successfully sign up a majority of members to direct debit payment of subscriptions, the union took a significant financial hit across government.
The union then took Ministers to court and won – and after the out-of-court settlement with the DWP, the PCS is now pursuing pay-outs from other government departments for damages following check-off’s withdrawal.
A spokesperson for the PCS told Left Foot Forward:
“The attempt to destroy the union through ending Check-Off wholly failed. It was a difficult time but we have steadied the ship and this pay-out is a vindication of our stance industrially and politically.”
Two DWP workers formed the basis of the union’s case, after the end of check-off had a ‘detrimental’ effect on membership.
A spokesperson for the DWP said the case had not been formally sealed and therefore would not comment.
LFF understands PCS membership went from 200,000 to around 150,000 after government departments ended the practice of allowing people to pay union subs through their pay. The union was forced to urgently redeploy resources into organising.
While check off is now in place again, the union has moved most members onto Direct Debit and is hoping to be back up to 200,000 members next year.
The government had failed to secure a ban on check off across the country in the Trade Union Bill – but former Cabinet Office Minister Frances Maude was determined to implement it in the civil service.
LFF understands the financial impact of the change for the PCS was estimated to be in the region of £6m in the DWP alone.
PCS general secretary Mark Serwotka said:
“This is an unprecedented, multi- million pound compensation payment by a government to a trade union. The removal of checkoff was politically motivated, aimed at undermining the union’s ability to defend its members’ jobs and to effectively oppose the Tory government’s devastating austerity programme.
“Instead of negotiating with the union properly, Ministers thought it more expedient to unlawfully target us financially.
“We will continue to pursue claims for damages in every major government department going forward.”
The civil service unions – including the FDA which represents senior mandarins – are currently seeking a judicial review over a lack of consultation on the government’s pay remit guidance – the pay cap.
While the PCS fell short of the turnout threshold for taking strike action over pay this June, the national executive is reportedly ‘committed to getting fair pay’ and will be looking to ballot members for industrial action on pay in the new year.
It is likely that much of the £3m settlement will be used by the PCS to push the case for industrial action – another kick in the teeth for the DWP after this week’s embarrassment…
Josiah Mortimer is Editor of Left Foot Forward. Follow him on Twitter.
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