The Council’s annual pay increase for all employees is locally determined having regard to national, regional and local pay and labour market information. This paper recommends the pay increase for 2015/16 and outlines the budget implications.
Minutes:
Councillor Daubney presented a report which reminded Members that the Council’s annual pay increase for all employees was locally determined having regard to national, regional and local pay and labour market information. The report recommended the pay increase for 2015/16 and outlined the budget implications.
Councillor Daubney reminded Members that the Authority had continued to demonstrate its commitment to pay restraint for staff over the past 5 years, with local pay settlements falling considerably below inflation in accordance with the Government’s general policy on public sector pay. The Government had retained a 1% target for public sector pay in 2015/16 and it was recommended that this was reflected with an annual pay increase of 1% for all employees from 1st April 2015. The proposal was also to recognise the particular difficulties faced by the Authority’s lowest paid workers by awarding an additional 0.5% increase to staff earning less than £21,500 and to introduce a modest increase in the minimum wage of £7.00 per hour to £7.20 per hour from the 1st April 2015.
Councillor Daubney also drew attention to the challenging savings targets which had been set by the authority and were being achieved by the staff, proposed the award of a £250 pro rata non-consolidated lump sum for those employees in post on 1 October 2014.
The Executive Director, Central and Community Services reminded Members of the comments from Unison were contained within the report which were generally supportive, whilst reminding Members that the year on year pay freezes had considerable effects particularly on the lowest paid staff. The report had been submitted to the Joint Employee Committee which had been supportive of the proposals, they had drawn attention to some other local authorities who had introduced the National Living Wage, whilst acknowledging that contracted staff employed by them were paid at minimum wage.
Councillor Pope asked if when the £7.20 per hour was awarded the grades above it were lifted in the same way. The Executive Director informed Members that they were not, it was purely the bottom line, which then had the bottom sliced off the grade.
Councillor Pope also asked if the additional 0.5% would be given in addition to the increase to the hourly rate. It was confirmed that the 1.5% would be applied first, then the £7.20 applied.
Councillor Beales drew attention to the need to strike the budget balance and supporting the lower paid staff. He acknowledged that in paying the £250, there would be those more deserving than others, but it was important to maintain staff morale when asking a lot from staff with the savings to be achieved. He supported incentivising staff to reduce costs.
Councillor Daubney supported the comments made and reminded Members that there was a long way to go in continuing the proud record of maintaining a balanced budget which would be more challenging in future years. He reminded Members that the Resources and Performance Panel had supported the proposals.
RESOLVED:1) That an annual pay award of 1% be implemented with effect from 1st April 2015.
2) That staff earning less than £21,500 (FTE) be awarded an additional 0.5% increase with effect from 1st April 2015.
3) That the authority increases its minimum wage to £7.20 per hour and adjusts the bottom point of PG13 accordingly.
4) That a flat rate and non-consolidated lump sum, not exceeding £250 per full-time employee (pro rata for part time), be awarded to all permanent/fixed term employees, who were in post on 1.10.14 on a one-off basis in recognition of the Authority exceeding its budgeted savings target for 2014/15.
5) That this proposal be presented to the Board of Alive Leisure for agreement in respect of all Joint Employees.