Agenda item

This report updates on progress of the pay negotiations for the financial year 2025/2026, and sets out the Council’s pay offer for 2025/26 for referral to Full Council for agreement.

Discussion:

The Chief Organisational Culture Officer introduced the report which updated on the progress of the pay negotiations for the financial year 2025/2026, and to set out the Council’s pay offer for 2025/26 for referral to Full Council for agreement.

The Chief Organisational Culture Officer suggested an amendment to the recommendations to extend the leisure centre offer to Medway Council Councillors as well as employees and offer a 25% family and joint membership annual membership, with no monthly membership falling below £20 a month.

Cycle to Work Scheme: It was confirmed that this was a new offer as a salary sacrifice scheme not the previous interest free loan.

Pay offer: Some concern was raised as to the affordability of the pay offer in light of significant budget pressures; mindful of the Chartered Institute of Public Finance and Accountancy (CIPFA) conclusion that Medway was in a grave situation in relation to its financial sustainability; and the concept of asking council taxpayers to fund staff rather than improve their lives.

The Chief Finance Officer advised that there were decisions to be made about what the Council wanted to deliver and to assist this a stable and engaged workforce was required. The last budget had included a need for ‘right-sizing’ to be able to deliver the Council Plan, ultimately the risk was not being able to deliver the plan the Full Council had agreed. A report would be considered by Cabinet on 11 February 2025 which would articulate the latest thinking on reducing the budget gap moving forward. Her role was to assist the Council in achieving a balance budget that delivered the Council’s goals.

The Chief Organisational Culture Officer added that there were high hidden costs to turnover and for 8 years pay had not risen with inflation or kept up with the market. The previous pay award had already seen a considerable reduction in turnover, but they were still playing catch up with the market.

Members noted the Joint Consultative Committee comments from the earlier meeting.

Decision:

The Committee recommended to Full Council to agree:

a)            a 5% increase for all staff on MedPay terms and conditions, which includes those on MedPay Performance, Progression Pay Scheme as well as those who are on the legacy scheme.

b)            not to increase sleep-in payments.

c)            not to return to National Joint Council payscales currently, but keep negotiations open on this matter.

d)            an additional ‘wellbeing’ day to be awarded on a colleague’s birthday to be taken on the day or close to the birthday as agreed with line management.

e)            to offer a salary sacrifice Cycle to Work scheme with a scheme partner for an initial term of two years.

f)             to implement a shared cost Additional Voluntary Contribution scheme with My Money Matters, formerly AVC Wise for an initial term of three years.

g)            to offer a 50% discount on annual single premier membership to our leisure centres annual admission membership and a 25% discount on family and joint memberships, with no monthly membership falling below £20, for Medway Council employees and Medway Council Councillors to Medway Leisure Centres.

h)            to align the Children and Adults social care pay scales, for the reasons set out in Appendix 4 to the report.

i)             to align the Joint National Committee Youth and Community Workers terms and conditions except for automatic increments, as agreed at this Committee on 4 December 2024.