Agenda item

To consider the annual Pay Policy Statement, to comply with the requirements of the Localism Act 2011.

The Committee was asked to consider and approve the Pay Policy Statement, which it was required to produce in order to comply with the requirements of the Localism Act 2011. The Statement would then be submitted to Full Council for endorsement on 18 March 2013.

The Committee queried the final paragraph under the Pay on Appointment heading, as this matter had been discussed in the previous year, and it was understood to have been agreed that this wording would be revised. The Head of HR agreed to look into this matter, and amend the wording of the statement accordingly, in line with the previous agreement.

It was clarified that the Chief Executive pay scale referred to in the second bullet point under ’Council Pay Rates / Scales’ had last been reviewed in October 2009, and was the same pay scale used for subsequent Chief Executive appointments.

The Committee asked about the arrangements for public health staff transferring over to the Council in April. It was confirmed that under the terms between the Department of Health and Local Government Association, the benefits of transferring staff would be protected for a period of two years, with any issues such as restructures affecting those staff requiring the approval of the General Medical Council during this time.

In response to a question, it was advised that approval for any future discretionary award such as the previous agreement to award £250 to the lowest-paid Council staff, would be agreed through the Committee.

In response to a request from the Committee, it was agreed that a bench-marking exercise with other local authorities around the pay multiple would be undertaken, and the information around this shared with the Committee by the Head of HR.

The Committee asked about the pay progression and performance related pay for senior managers and chief officers, as set out in the report, in particular the fact that it was indicated that there was discretion for 2 increments with regard to performance awards. Concern was raised regarding this discretion being in place in the current economic circumstances and it was suggested that this should be amended. The Head of HR confirmed that the performance award structure was currently drafted as set out in the report, but that in practice this had not yet been implemented and no such awards had been made.

It was noted that a review of senior manager pay and performance was being undertaken with Member involvement and that this was taking place alongside the review of the senior management structure. The comments made by the Committee with regard to the pay structure, and particularly the concerns regarding the inclusion of discretionary performance awards of 2 increments, would be fed into this work.  It was anticipated that the initial report on this review would be presented to the Committee in September.

The Committee asked whether, in light of the requirement for the Statement to include a definition of the ‘lowest-paid employees’, the draft currently complied with the Act. The Head of HR advised that the lowest paid employees of the Council were paid in line with the London Living Wage; it was noted by the Chief Executive that the Statement would be re-drafted to incorporate this definition, in order to ensure compliance with the requirements of the Act.

The Committee asked about the section on Re-employment of Employees. The Head of HR advised that re-employment was in line with the Local Government and Housing Act 1989. It was felt that this section should be made more explicit with regards to the requirements of the legislation, and it was suggested that it could be amended to reflect there may be circumstances where re-employment would be subject to the specific terms of a redundancy package.

RESOLVED

That the Committee approve the Pay Policy Statement 2013/14, subject to the amendments agreed above, and remit it as amended for endorsement by Council on 18 March 2013.