Unite To Ballot Members On Public Sector Pay Proposal

Unite has announced that members will be balloted on the first five years of the proposed public sector pay agreement announced in the 2026 Budget.

A statement from Unite follows below:

Further to the “Budget 2026 – Public Sector Pay” electronic mail out to all members on  Budget Day, this is the pay bulletin being issued by Unite in advance of the ballot of all  members on the pay proposal.

The elected, Unite Public Sector Pay Working Group met on Wednesday 8th July to discuss  the Budget and specifically public sector pay and crucially it was agreed that the union  would ballot on the first element of the pay proposal only. So the five-year proposal from  2026/27 to 2030/31 and not the second element proposed to run from 2031/32 to 2035/36.  A further ballot of members will be undertaken in 2031 on whether Unite members working  in the public sector at that time accept the further five year pay arrangements.  

The rationale for this decision is that we do not know what the economic environment will  be in 2031 including IRP and IRP forecasts for the following five years. The Unite  membership in the public sector in 2031 will also look very different, with many current  members no longer working in the public sector and many new entrants to the public sector  being Unite members in 2031. So that second vote will be a refresh of the mandate,  reaffirmation of the proposal or we might want/need to pursue additional elements as part  of the second half of the pay proposal.  

Moratorium/Negotiation Process/Higher Earners 

In the Budget Day mailing, it was indicated that Unite had not agreed a moratorium on  departmental or sectoral claims as was suggested in the Budget address. HMGOG have  acknowledged and agreed that Unite have provided no undertaking as to a moratorium. As  previously articulated Unite’s priority is to see available monies directed into public sector  pay, which is consolidated, pensionable and permanent. However where there are  departmental or sectoral claims that are meritorious and well-founded the union will  continue to pursue these on behalf of members. HMGOG of course reserves the right to  reject such claims, very much as is the current rhythm of industrial relations. 

There have been further exchanges around the nature of the negotiation process and  whether the spirit and the letter of the Unite Dispute Resolution Agreement from 2025 have  been met. It is Unite’s view that the negotiation process has fallen short of these  expectations. However as indicated in the Budget Day mailing, the level of engagement has  been a marked improvement on previous years and it is pleasing that several of Unite’s 

proposals presented through the negotiation process have formed part of the final proposal  announced at Budget by the Chief Minister.

Also as articulated in the Budget Day mail out, Unite had accepted the differential treatment  at £100k+ conditional on a proposal made by the union, which HMGOG have now confirmed  in principle is agreed and we have already started the process of engaging with our shop  stewards and members in this category.  

Minimum Entry Salary 

We are awaiting the exact mechanics of how this element will operate. We would anticipate  that each August once the public sector pay increase is applied an exercise will be  undertaken to look back to the preceding 1st April to 31st July. Any underpayment for  members identified versus the UK minimum would result in a backpay adjustment to be  made. It is anticipated that the minimum entry salary in the UK as at 1st April 2026 will be  £25,614.  

The minimum entry salary matching position with the UK has been an issue that Unite has  been pushing hard for and it is pleasing that in addition to the agreement signed between  Unite & HMGOG for 2025/26 that this is now a permanent fixture. The reality is that most  likely as Gibraltar pay increases will outstrip UK increases that the gap at the 1st April each  year when the UK increase is applied will reduce year on year.  

Annual Leave 

On the additional two days of annual leave on attainment of 15 years service, again we are  awaiting clarification on when this will apply and to whom, for example those that will reach  15 years service later this year. Additional annual leave was a key component of the union’s  pay claim so the increase for longer serving public sector workers is welcomed; however  Unite will continue to seek improvements in leave entitlement across the board to improve  work/life balance for all public sector workers.  

Superannuation Cap/Pensionability of Allowances 

The union has long sought an increase to the cap on when contributions from the employer  and employee to the Superannuation Fund cease. Allowances to be pensionable is also a key  area given that sizeable proportions of income are derived from allowances. The Chief  Minister has announced that a Working Party will be set up between HMGOG and the Joint  Unions to include Unite to explore these areas. Members will be kept updated.  

Weighted Average on Real Terms Loss in Pay 

There were numerous discussions around the actual figure on real terms losses in pay given  that the statistics can be cut in different ways, different figures can be utilised to achieve  different outcomes. The real terms loss in pay since August 2019 to August 2025 will of  course differ dependent on salary given the banded nature of pay increases in previous years  and indeed pay freezes at some pay bands. In light of the varied nature of real terms losses 

in pay and to simplify an approach to the pay solution to address the recovery meant that a  weighted average approach was adopted which meant looking across the real terms losses  per salary band and then landing on the average of 12.6%.  

Public Sector Pay 2026/27 to 2030/31 

The proposal on pay for the next five years is that pay for those earning up to £100,000 will  increase by 2.5% annually plus the April IRP figure capped at 2.5%. For those earning  £100,000 or more, those figures would be 50%, so an annual increase of 1.25% plus 50% of  IRP with a cap of 1.25% so a maximum increase of 2.5% per annum. Both formulas have  recovery mechanisms in place where IRP is above 2.5% in a given year.  

To provide this in an illustrative format, tables have been produced below mapping out  what the pay formula could look like across the next five years, but clearly this is  hypothetical as we do not know exactly what IRP will be in coming years and the examples  used are deliberately smoothed out for the ease of presentation:- 

Up to £100,000 per annum basic pay:- 

Public Sector Pay 2031/32 to 2035/36 

Whilst the position on 2026/27 to 2030/31 was discussed extensively with the Joint Unions  in negotiations, there were cursory discussions around 2031/32 and beyond, but no real  detail. As previously detailed Unite is not balloting on this element and will not until 2031.  The proposed position from HMGOG for 2031/32 to 2035/36 is an annual pay increase of  IRP+1% up to a maximum of 4%.  

It is unclear at this stage whether there would be any carryover as with the model for the  first five years, so if IRP+1% was 4.5% would there be a 0.5% carryover to a future year to be  paid when IRP was lower? The union has also sought assurances and confirmation that the  2031/32 to 2035/36 proposal will be paid to all and in full regardless of earnings. The union  awaits further dialogue on these points and members will be updated once we have clarity,  but as stated we are not balloting on this element at this time.  

Workplace Visits/Ballot Arrangements 

Unite will be undertaking a series of workplace visits in advance of the ballot opening to  speak with members, to discuss the pay proposal and answer any question or queries. It will  also be an opportunity for members to “Update Their Details” so as we have e-mail  addresses or mobile numbers for the E-Ballot. We have a short window so will not be able to  visit every workplace, but will visit as many workplaces as possible. If your workplace wants  a Unite visit please contact the union at Membership.Gibraltar@unitetheunion.org and we  will facilitate that visit. 

The current proposed ballot timetable is:- 

Electronic Ballot Opens – Thursday 16th July 

Electronic Ballot Closes – Midnight Sunday 26th July 

Physical Ballot at the Unite Office Opens – Monday 27th July 

Physical Ballot at the Unite Office Closes – 4pm Thursday 30th July  

The proposed ballot will enable the majority of members to vote electronically via e-mail or  text, then there will be the opportunity to vote physically in the ballot in the office. The  closing date of the ballot also provides that we have a ballot outcome in advance of the pay  settlement date of 1st August. The ballot outcome will be advised to members.  

The proposal that has been presented at Budget 2026 represents the potential end of a long  road dating back to the dispute in 2025 and the Dispute Resolution Agreement that  members voted in favour of. Unite have pursued the terms of that agreement since  September 2025.  

Members will now decide whether to accept the pay proposal for 2026/27 to 2030/31.