Scottish Water CEO earns £22,500 more as workers ballot to strike over pay after treated with ‘total contempt’

Scottish Water’s new CEO has received an annual salary £22,500 more than his predecessor, despite concerns it has breached public sector pay rules.

Union leaders have raised concerns that there should have been a 10% cut according to Scottish government pay policy. According to the policy, it states that there is an "expectation" that there is a 10% reduction in the pay packages of all new chief executive appointments.

It also states strategic aims of "protecting those on lower incomes, continue the journey towards pay restoration for the lowest paid and recognise recruitment and retention concerns".

The GMB union has strongly criticised Scottish Water for "dramatically increasing" the salary of its new CEO while their lowest-paid staff have been asked to accept a pay cut as part of a wider restructuring of grades and salaries.

Alex Plant, who took over from Douglas Millican in May, has been given an annual salary of £295,000 when Millican had been on £272,500  - and according to the pay policy he should have been on £50,000 less.

Unite the union has announced that around 500 frontline Scottish Water workers will now participate in a consultative ballot over the potential for strike action due to the water company bosses attempting to impose a new grading structure and pay offer outside the agreed collective bargaining processes - while its new CEO earns more.

Unite general secretary Sharon Graham, said Scottish Water bosses are “treating the workforce with total contempt” and it is “unacceptable”.

She said: “There are long-standing processes in place for discussing the jobs, pay and conditions of the workforce. This can’t be burst open just because there are new people in the boardroom with exorbitant salaries.”

The ballot closes on 31 August while GMB Scotland announced it has also agreed to enter a formal dispute with Scottish Water after managers sent an email to all staff detailing the proposed new pay structure without proper consultation or agreement.

Claire Greer, GMB Scotland organiser, said: “For management to unilaterally rip up the agreed procedures for reaching agreement and consensus is completely unacceptable and should alarm the people of Scotland. These are not the actions of a responsible company delivering a vital public service but a rogue employer.”

She added: “The anger and disappointment of our members is absolutely justified when the lowest-paid among them are being asked to accept a substantial pay cut while the new chief executive is offered 20% more than he should be according to the public pay strategy.”

The GMB also say the restructure will mean the lowest paid will be the most impacted and Scottish Water is intending to narrow the pay bands at the bottom meaning lowest paid workers hit the top of their pay band more quickly. The union says that at the moment a member of staff starting on £21,000 a year won’t hit the top of their band until they earn £28,000 but the changes would mean they would be stuck on £23,000, while the higher paid members will have their pay band widened allowing them to continue with potential pay increases.

According to the Herald, Scottish Water said it did not want to comment on the Scottish government’s public sector pay policy but a spokesman said that executive pay at the firm  “reflects the essential nature of the water and waste water services to the daily lives of five million people”.

The spokesman added: “Executive remuneration is set by Scottish Water’s board to attract and retain individuals who can achieve high performance and deliver good value for customers. Negotiations between Scottish Water and the trade unions are continuing.

"What we are proposing is a fair deal. Every Scottish Water employee subject to pay increases negotiated with the trade unions would receive a minimum of 8% in a pay award this year, backdated to July 1, 2023.”

“We are continuing to negotiate and engage openly with trade unions on bringing forward a proposed modernised reward system which is fair and transparent.

A Scottish government spokesman also told the Herald that in this instance there was no breach of the public sector pay strategy. He said the expectation of a reduction in pay was predicated on the ability to fill the post with a suitable candidate having regard to external market levels, value for money and recruitment and retention issues.