Unions have warned public sector workers will be worse off after hitting out at pay deal which will see staff handed a two per cent pay deal for the next three years.

The deal would see members of employed under the Public Services Commission (PSC) given a two per cent rise for the current financial year and for each of the next two, although the final year would depend on the rate of inflation at the time.

The Isle of Man Government outlined the offer in a letter to unions said the offer, which sat alongside conditions based on the rate of inflation.

But Mick Hewer, of Prospect, is unhappy with it and has called on further talks ‘as a matter of urgency’.

He says the offer is below that already offered to groups of staff working within Manx Care for the year 2024/2025.

‘It is imperative negotiations commence now so that we are not in a position whereby our members continue to be financially disadvantaged because of the continuing effects of the cost-of-living crisis and previous high inflation,’ Mr Hewer said.

‘Although the rate of inflation may have dropped, prices continue to rise, only at a slower pace. The cost of food items, fuel, heating and housing costs remain high when compared to 24 months ago. 

‘As far as our members are concerned, they expect to see an increase in salaries that result in an easing of the financial pressures they face today, an inflation-proof award, anything less effectively results in a pay cut on top of a further erosion of take-home pay because of the recently applied two per cent increase in taxation.’

Mr Hewer believes the public sector is losing staff to better paid jobs in the private sector which is adding further pressure. He says Prospect has engaged with the PSC and provided possible solutions to the deadlock and is seeking to a quick response.

He said: ‘Our members continue to raise concerns about below inflation pay increases year after year. It is not acceptable for pay to be eroded year on year because of the effects of inflation.

‘Staff shortages, the increased incidents of low morale and a slow haemorrhage of staff leaving to seek better pay, and terms and conditions elsewhere is adding to the problem. It is unacceptable for this position to continue.’

Unite the Union has also posted a terse response to the offer on Facebook.

It posted: ‘There has been a huge influx of members comments about the latest offer from the PSC. It is definitely a NO.. it is not an offer when the tax increase of two per cent cancels out the offer and NO to a 3 year deal. We hear you.’

The unions represent workers across government including civil servants, education support staff and manual and craft worker.

The government has been contacted for a comment.