Issue - items at meetings - Pay Modernisation

Report of the Chief Executive (to be circulated).

1.                  That the contents of the report and the need to modernise aspects of the council’s pay and terms and conditions which are locally determined be noted;

2.                  That it be agreed that the council should commence a process designed to implement a new system of allowances and additional payments that are consistent, modern and transparent;

3.                   That it be agreed that the council should commence a process designed to introduce Job Families and implement any associated changes to the council’s grading structure and pay-line;

4.                  That the Chief Executive be authorised to nominate officers, to enter into negotiations with the recognised trade unions with a view to reaching an agreement on a revised package of pay and terms and conditions; and

5.                  That the Chief Executive, the Director of Adult Social Care and the Director of Finance be authorised to implement a modernised pay and terms and conditions package in accordance with the law, including the power to adopt appropriate grievance and appeal procedures and to take any other steps necessary, conducive or incidental to achievement of the same.

Note:      The Special Circumstances for non-compliance with Council Procedural Rule 23, Access to Information Procedure Rule 5 and Section 100B (4) of the Local Government Act 1972 (as amended), (items not considered unless the agenda is open to inspection at least five clear days in advance of the meeting), were that the information necessary for the report and the consultation with relevant persons was not finalised in time fro the publication of the agenda.  The Committee needed to make the decision at the meeting so that negotiations could start as early as possible.

115.1          The Chief Executive introduced the report and explained that there was a need to review the council’s pay structure to take account of the varied number of enhancements that existed and to produce a new system that was consistent, modern and transparent.  She stated that it was intended to discuss the new package with the recognised trade unions and she hoped to reach an agreement with them on its introduction in the autumn.  The council’s staff were its most important asset and at the heart of the proposed changes which would enable better career progression.  She stated that the council had not entered into this process lightly and held no preconceptions or any intention to reduce the wage bill, but rather to modernise the pay package and establish a clear and transparent scheme.  As things stood it was not possible to do nothing and therefore the staff and trade unions were being asked to be fully involved in the review process.

115.2          Councillor Mitchell stated that she was concerned about the process and the length of time that the issue had remained unresolved.  She was aware of previous intentions that had come to nothing and given that it was an important issue sought reassurance that it would be taken forward and addressed, without adversely affecting the lowest paid.  She also expressed her concern over the nature of the language used in the report which she felt could be regarded as combative and therefore cause resentment.  She then referred to paragraph 5.1 and queried whether there was an indication that the overall pay bill would be brought down in view of any potential lump sum payouts.

115.3          The Director of Finance stated that it was intended to keep all options open at this stage, and it was not inevitable that the overall pay bill would come down.  However, there was a need to seek to account for any recompense that was made to allow for a new pay structure to be brought in and to seek to contain the changes within the existing cost structure.

115.4          The Chair stated that the problem had existed for a number of years and had now reached a point where it needed to be addressed and therefore proactive and constructive negotiations needed to be opened with the staff and the trade unions.  He hoped that all parties would support this.

115.5          Councillor Hamilton stated that he had previously been a member of the Single Status Working Group, which had met on a number of occasions but then simply ceased from meeting without any explanation.  He noted that the report mentioned a total of £3m in allowances and hoped that appropriate safeguards would be incorporated to protect those who were directly affected by any changes in the new pay structure.  He was concerned that a figure of £4k was being mentioned as the amount that low paid workers could lose as a result of the allowances being removed.

115.6          Councillor G. Theobald stated that there was a need to establish a fair and equitable pay structure for all staff and currently there were a number of allowances that varied across the organisation and as such should be addressed.  He believed that the matter had to be resolved as it had remained a problem for over a decade.

115.7          Councillor Wakefield stated that she hoped the importance of communication would be taken into account so that all staff, trade unions and councillors were aware of the issues and how they were being tackled.

115.8          Councillor Shanks asked for further information in regards to the negotiating process and expressed her concern that the lowest paid workers should not be unduly affected by any changes to the overall pay structure.

115.9          Councillor A. Norman stated that she believed that there should be an open dialogue between the council, the staff and the trade unions with every opportunity to put forward concerns so that the resultant pay structure was regarded as being equitable and fair.

115.10      The Chief Executive stated that there was a need to get on with the process of dialogue and negotiation and it was critical that the trade unions were involved and willing to discuss matters so that issues could be addressed and agreement reached on a new scheme.

115.11      The Monitoring Officer stated that he believed the committee should move into closed session so that the part two report and associated issues that were being referred to could be discussed.  He also stated that a part two report had been included on the agenda because of the financial and personnel information, which would be part of the negotiations with the trade unions and the legal implications for the authority, all of which fell under the Local Government Act 1972; and was therefore the proper way for the committee to deal with and consider the information.

115.12      The Chair noted the advice of the Monitoring Officer and stated that the meeting should move into closed session, in order to consider the part two report and discuss matters further.  He stated that as much information as possible had been contained in the part one report and he would ensure the outcome of the discussions held in closed session were reported in open session.

115.13      The meeting then moved into closed session.

115.14      Following the consideration of the part two report and discussions on the issue, the Chair reported that the recommendations contained in the part one and part two reports had been approved.

115.15      RESOLVED:

(1)         That the contents of the report and the need to modernise aspects of the council’s pay and terms and conditions which are locally determined be noted;

(2)         That it be agreed that the council should commence a process designed to implement a new system of allowances and additional payments that are consistent, modern and transparent;

(3)         That it be agreed that the council should commence a process designed to introduce Job Families and implement any associated changes to the council’s grading structure and pay-line;

(4)         That the Chief Executive be authorised to nominate officers, to enter into negotiations with the recognised trade unions with a view to reaching an agreement on a revised package of pay and terms and conditions; and

(5)         That the Chief Executive, the Director of Adult Social Care and the Director of Finance be authorised to implement a modernised pay and terms and conditions package in accordance with the law, including the power to adopt appropriate grievance and appeal procedures and to take any other steps necessary, conducive or incidental to achievement of the same.

Note:      The item is listed in the minutes in its consecutive order for ease of reference, although it was taken as the last item for discussion in the open part of the meeting, in accordance with the Chair’s request at the start of the meeting.