Agenda item

This report will update the Committee on the progress of the Pay and Grade Review Project and to agree a recommended way forward.

Discussion:

This report provided an update on the progress of the Pay and Grade Review Project since the last meeting (20 November 2013). The Assistant Director, Organisational Services, referred the Committee to the discussion at the Joint Consultative Committee (JCC) earlier the same evening, and provided the Committee with the background to the Pay and Grade Review, including the issue of long and overlapping pay grades, and stated that following Committee approval, the Council had consulted on four options between 25 November 2013-20 January 2014. The Council had received over 200 responses to the consultation and with regards to preferred options, there were 24 responses in favour of option 4 with 14 responses in favour of option 1.

The Assistant Director, Organisational Services, stated that option 4 was the preferred option given that this would result in the least number of employees requiring pay protection. She stated that the Council was now proposing pay protection for five years (years 1-3 at 100%, year 4 at 75% and year 5 at 25%) compared to the original proposal (years 1-2 at 100% and year 3 at 25%) following discussions with the trade unions.

The Assistant Director, Organisational Services, informed the Committee of the proposals around pay progression and this would be subject to performance and would not be automatically awarded. She also informed the Committee that there was currently a collective dispute with the trade unions on the Pay and Grade Review with particular reference to the issue of pay progression.

The Assistant Director, Organisational Services, informed the Committee that the trade unions, at the JCC meeting earlier the same evening, had made two counter proposals regarding the Pay and Grade Review as follows:

• Continue with option 1 as a holding position together with a 0.5% pay award. This would cost the Council £400,000.

• Accept option 4, delay the implementation of the pay progression scheme for 12 months together with a 1% pay award. This would cost the Council approximately £1.2m.

Members raised a number of issues including:

·                    That the counter proposals from the trade unions merited further discussion given that staff had not received a pay increase for a long time.

·                    That the implementation of the pay progression scheme was ambitious in terms of training managers, staff awareness and the need to set targets by April/May. The scheme would need to have the general support of staff.

·                    Clarification was sought on the proposal for senior managers to hear and determine appeals against dismissal.

The Assistant Director, Organisational Services, stated that these appeals would only relate to dismissal resulting from the Pay and Grade Review and if there were a high number of appeals it may be impractical for Members to hear and determine the appeals.

·                    The Pay and Grade Review should be considered in the context of the savings that the Council had to make in the next two financial years (£27m).

·                    That a pay progression scheme would be a national requirement by 2015 (i.e. that time served increments would no longer be appropriate) so it was appropriate that Medway was moving to such a scheme now.

·                    That option 4 was the preferred option and this had not been rejected by the trade unions.

·                    That negotiations were taking place between the Council and the trade unions and this had led, for example, to revised proposals for pay protection.

Diversity Impact Assessment Screenings had been undertaken and were set out in Appendices 12 – 14 to the report. The screening process did not highlight any significant adverse impact to any of the protected characteristics under the Equality Act 2010, other than “age” which the council is already taking positive action to remedy. Therefore, a full Diversity Impact Assessment was not required, however some areas would need to be monitored as part of the regular monitor and review process.

Decisions:

a)     The Committee recommended to Full Council to agree that the revised pay structures (option 4) as set out in appendices 7 and 8 to the report are implemented.

b)     The Committee, subject to approval of decision a) above:

i)                    Agreed the current protection arrangements be increased to 100% for years one to three, 75% for year four and 25% in year five.

ii)                  Agreed the revised annual leave and notice periods as detailed in section 7 are adopted for those staff below service manager.

iii)                Agreed the principles of pay progression as set out in Section 4 of the report.

iv)                Noted that consultations with the trade unions will continue on the job evaluation appeals procedure, the competency framework, and the detail of the pay progression scheme.

v)                  Agreed in the event that a collective agreement cannot be reached that the Assistant Director, Organisational Services is delegated authority to undertake the necessary dismissal and reengagement process. Should it be necessary to unilaterally change individual contracts of employment, that the dismissal appeal process be amended as set out in decision vi) below.

vi)                 Agreed to delegate the power to consider, hear and determine appeals against dismissal resulting from the Pay and Grade Review to the Council’s Directors, Assistant Directors and Service Managers.

In accordance with Council Rule 12.5, Councillors Christine Godwin and Paul Godwin requested that their votes against the decisions set out in iii) and v) be recorded in the minutes.