Unions have warned that unrest among nurses and other NHS staff over the settlement could still lead to industrial action.

The proposed increase is worth 8.1 per cent over three years and is part of a new set of public sector pay agreements Gordon Brown hailed as ground breaking and vital to ensure wage stability.

Unison’s health officer, Mike Jackson, told a health workers’ conference in Manchester that the deal, worth 2.75 per cent this year followed by rises of 2.4 per cent and 2.25 per cent, plus extra for the lowest paid staff, was the best that could be achieved.

But in a stand-off with Alan Johnson, the Health Secretary, his department’s officials have written to unions saying the Government reserved the right to stage or even reduce the pay offer if it is not accepted.

Mr Jackson said the only way the deal could now be changed was if “effective” industrial action were taken.

Unison’s head of health, Karen Jennings, said there were “huge risks” in accepting a long-term deal but she described the offer as “balanced”.

The conference will decide whether to recommend acceptance of the three-year deal to Unison’s 500,000 health workers.

Another union, Unite, which represents 12,000 members including health visitors, mental health nurses and some pharmacists, has already recommended that staff reject the deal.

Peter Allenson, a spokesman, said: “This deal is not sufficient for us to be able to recommend acceptance.

“We have reservations that the re-negotiation clause, which should come into effect in situations of rising inflation, is not strong enough and in a climate of economic insecurity, it is not at a level sufficient to meet members’ needs.”

A Department for Health source said the Government considered the proposal to be “generous”.

“We are certain the majority of health staff will be happy with this deal and we hope the unions put it to a full ballot of their membership,” he said.

“If that happens, we are confident we will win. If not, we can not guarantee the eventual settlement will be as generous as this offer.”

Gordon Brown has repeatedly said he is determined to keep public sector wage rises down to tackle inflation.

Last year, police staged an unprecedented march through Westminster in protest at being awarded a 2.5 per cent increase, below the level recommended by the independent pay review body.

Teachers from the National Union of Teachers have staged a series of strikes over their award, the first industrial action in schools for 21 years.

College lecturers walked out on the same day over their demand that their pay rise by six per cent, to the same level as teachers.

From:
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2008/04/15/nhs115.xml

Health Direct warns that the Labour bullies are up to their old tricks by attempting to blackmail hard working NHS staff to accept the DOH’s meagre offer.