Issue - meetings

To consider a report by the Managing Director.

Approved the pay model set out in Appendix 1 of the report for implementation in respect of all Council employees from 1^st April 2014; authorised the Managing Director, in consultation with the Executive Leader, to implement the necessary changes to individual’s pay and grading arrangements in accordance with the process outlined in Appendix 2 of the report; and agreed to remove the Essential User Allowances for Senior Managers and attendance allowances for certain operations staff with effect from 1^st April 2014.

(In view of the late circulation of the supporting papers for this item, the Chairman announced that he proposed to admit the item as a matter of urgency, in accordance with Section 100B (4) (b) of the Local Government Act 1972, given the need for the Cabinet to approve the pay model to enable the necessary changes to be implemented to pay and grading arrangements with effect from 1st April 2014).

Further to Minute No. 13/43 and by way of a joint report by the Managing Director and the Assistant Directors (Finance & Resources) and (Environment, Growth and Planning) (a copy of which is appended in the Minute Book) the Cabinet was invited to consider the content of a proposed new pay model for all Council employees, including a job evaluation appeals process and a proposal to remove essential car user payments and attendance allowances with effect 1^st April 2014.  The proposals had been prepared following staff consultation and negotiations with Staff Council representatives.

Members were advised that the existing pay model was now regarded as not being financially sustainable and inequitable leaving the Council at risk of equal pay claims. Executive Councillors were encouraged to note that the new pay framework was judged to offer the best combination and solution for the Council being affordable, equal and consistent. Executive Councillors were advised that the changes would impact on all 692 permanent employees of the Council with 42.3% enduring a pay reduction and 57.5% experiencing a neutral impact or an increase in salary.  Members noted that staff would have a right of appeal against their grading and that provision had been made for pay protection of 3 months full pay or 6 months half pay if the employee prefers.

With regard to the financial implications for the authority, compared against the current pay structure, there would be an additional cost in 2014/15 of £184k. Executive Councillors were advised that savings would follow in subsequent years rising to 452k by 2020/21. However, when compared to the current budget provision, there would be a saving of £776k in 2014/15 rising to £2,017k in 2020/21.

In the discussion that ensued, Executive Councillors reiterated their commitment to deliver a fair and equitable pay scheme and expressed their satisfaction with the proposed Appeals Procedure.

Having thanked the Staff Council, Employment Panel and Managing Director for their valuable contribution to the Pay Review, the Cabinet

RESOLVED

(a)  that the pay model set out in Appendix 1 of the report now submitted be approved for implementation in respect of all Council employees from 1^st April 2014;

(b)  that the Managing Director be authorised, in consultation with the Executive Leader, to implement the necessary changes to individual’s pay and grading arrangements in accordance with the process outlined in Appendix 2 of the report; and

(c)  that Essential User Allowances for Senior Managers and attendance allowances for certain operations staff be removed with effect from 1^st April 2014.