Scottish Enterprise workers hit with 10% wage cuts as bosses’ pay rises

Several senior members of Scottish Enterprise’s leadership team, many of whom earn more than £100,000 annually, received pay rises in the most recent financial year causing the Public and Commercial Services Union to raise concerns about the move to slash other worker’s pay and says it will support any of its members who wished to challenge the proposed salary cut.

Longer-serving staff, who are more likely to have benefited from incremental pay rises over the years, appear to be the ones most affected by the cuts which are believed to have come into force in August.

Carolyn Stewart, managing director of people at Scottish Enterprise, said: “We’re reducing salaries to the maximum allowed in each salary band and we have done everything we can to minimise the impact of this for staff.”

Scottish Enterprise’s chief executive, Lena Wilson, has seen her basic pay rise almost 2.5 per cent from £203,000 to £208,000, according to the quango’s recently published annual report, which also showed that she received pension benefits worth £41,000 in the 2014/15 financial year.

The maximum salary ceiling recommended under the most recent Scottish Government guidelines for public-sector chief executives operating at a band-three level is £212,283.

Ms Wilson also picks up another £68,000 from a part-time non-executive director role with FTSE-100 materials testing business Intertek.

A spokesman from the Public and Commercial Services Union said it had been in talks about the possibility of cuts and said the body had “advised management” that it “did not accept the proposed reductions and would support any PCS member who wished to challenge the proposed salary cut.”

One person involved said they felt this was “not quite the equality agenda that the government is seeking within one of the largest public sector employers”.

There was also anger that other staff were given salary rises of between one per cent and 2.52 per cent.

Scottish Enterprise said it was abiding by guidelines on fair pay and had to make sure workers in the same job banding were not earning greater sums than were allowed.

Carolyn Stewart, managing director of people at Scottish Enterprise, said: “In line with public-sector pay guidance, it is important that we operate a policy of fair, equal and proportionate pay and that staff doing similar work are paid to the same maximum amount.

“We’re reducing salaries to the maximum allowed in each salary band and we have done everything we can to minimise the impact of this for staff, including starting the consultation process with trade unions a number of years ago and phasing in the reductions.”

Addressing the issue of the pay rises which were awarded in its most recent financial year, Scottish Enterprise said: “We implemented a modest progression for all staff in line with public sector pay guidelines, from 1 per cent to 2.52 per cent depending on position within the pay band and providing the salary was below the band maximum.”

Asked about the levels of pay rises awarded to Ms Wilson and other members of its senior leadership team, Scottish Enterprise said: “The one per cent to 2.52 per cent modest progression relates to all staff and has the same conditions applied at all grades – any progression depends on position within salary band, and the resulting salary must be below the maximum in the band.”

In its 2015 annual report, Scottish Enterprise recorded staff costs on wages and salaries of £50.1m, up from £48.2m.

According to the report, it employed an average of 1367 full-time staff in the year with a median remuneration of £38,567.