Number One Priority

The trade unions responded predictably to Scottish Government's announcement yesterday - that the public sector pay freeze is to be extended through to 2012/2013.

But what they didn't say - of course - is what other spending cuts should be made - if a specific amount of money is allocated or ring-fenced for pay purposes.

Which is par for the course - of course - and allows the government to argue that the unions are not facing up to reality.

So there may be strike ballots - there may even be strikes in certain areas - but what they can't do is to conjure extra money out of thin air.

Finance Secretary - John Swinney - is urging other public sector employers to follow the Scottish Government's lead by protecting the lower paid - which is a sensible move.

In areas where the Scottish government is the direct employer - such as the civil service - the pay freeze will not be employees earning less than £21,000 a year.

Employees in this category will continue to get a a rise of at least £250 - but Scottish councils have failed to embrace such policy - so far at least.

All this talk of industrial action is just a ritual dance.

Because union leaders cannot think of anything else - anything practical - to say.

But the reality is that a pay increase to employees earning more than £21,000 a year - will cost a significant number of jobs.

Whereas at the moment the number one priority is creating jobs - and keeping people in work.

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