Agenda item

RECOMMENDED:     1)         That:

a)    An increase of £1925 or 5% (whichever is the greater) be applied to all salary points.

b)    A flat rate non-consolidated cost-of-living payment of £750pa (pro rata for part time employees) to be paid to all permanent employees and temporary staff (with a contract specifying a duration of 12 months or more) who were in post on 1^st April 2023.  This payment to be paid in 12 monthly instalments with effect from April 2023.

c)    The top points of all grades (not individual salaries) are increased by the maximum applicable percentage increase (10.38%) with effect from 1^st October 2023.  This will not have an immediate financial impact but will assist with future recruitment and retention. 

2)         That changes to annual leave and working hours are not implemented as part of the local Pay Award as any changes to terms and conditions that are negotiated nationally would continue to apply to our employees.

Reason for Decision

To implement an annual pay increase for employees that balances the requirement to make financial savings with the need to recruit and retain good quality employees.

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Cabinet received a report which reminded Members that the Council’s annual pay increase for all employees was locally determined, having regard to national pay and labour market information.  This paper recommended the pay increase for 2023/24 and outlined the budget implications. The report set out background information on inflation figures, public sector pay offers and pay settlements and the current positions with national negotiations.

The need to balance financial probity and transparency with the need to recruit staff so as to be able to deliver the financial objectives was stressed.  Attention was drawn to the difficulty recruiting staff to senior and professional jobs despite recruiting to higher in the grade and offering training, progress schemes, hybrid working and flexi scheme.

Comments from Unison were included in the paper.

Councillor Parish asked the following questions around the points raised at the Panel meeting:

·        Why did the proposal retain the same figures for all staff this year when the previous year higher paid staff received less.  Executive Director – D Gates responded that the reason was that the proposal equated to a 22% rise for lower paid staff compared to 9 % for higher paid staff.  Inflation over the 2 years from April 21 to April 23 totalled 17.7% (CPI) and 22.5% (RPI).  To propose less than 5% for all staff would be de motivating for staff given budget provision made.

·        Could a response be given on the comment raised about the increase to the top of all pay scales being a ‘ticking time bomb’.  The Executive Director explained that without the increase staff on the tops of grades did not receive an increase on pay and only a one off payment in line with the prp scheme.  It previously had meant that savings on budget provision had been made because staff were on the top of the grade and given no increase.  It was anticipated that potential increase in prp payments would equate to less than £20,000 pa which would be within budget provision.

·        Why was the proposal to increase the top of all pay grades not just those where there were recruitment difficulties.  It was explained that particular difficulties were experienced recruiting to grades PG9 and above. The lower grades would be increased by smaller amounts as the staff were getting a larger pay increase.  The proposals retained the differentials between grades.

·        Why was the £750 not only being paid to lower paid staff.  The Executive Director explained that it was being done to reflect the gap that all employees had experienced over the last 2 years in the cost of living verses pay awards.  It reflected a higher percentage for lower paid staff.

·        What would be the impact of only paying the £750 to those employees receiving the £1925 payment.  It was noted that the impact on staff morale would be as previously outlined and that staff immediately above any ‘cut off’ point would be less favourably remunerated compared to colleagues just below the ‘cut off’. 

Under standing order 34 Councillor Blunt asked what percentage of staff fell within the two groups of the pay award to see if there was any opportunity of introducing  upper limits.  The Executive Director confirmed that 23% of staff would be above the £38,000 line of a percentage increase or lump sum.  Councillor Blunt asked how some boundaries could be pushed to get the staff in post.  The Executive Director responded that the need to be able to increase the grade bands as proposed was essential to attract and retain staff in the first instance, as the cost of recruitment was high, and the worst case scenario was having to use agency staff where high sums paid included agency fees.

Councillor Morley asked if Job Evaluation criteria had been updated over the years, to which it was confirmed that it was a nationally recognised evaluation scheme, and all new jobs and changes in job descriptions were considered by the Panel or benchmarked against it. 

Councillor Morley also commented that the money saved previously was now needed for the award, but the same position didn’t apply to Alive, the funding of which needed to be considered in the future.

Councillor Moriarty, under standing order 34, commented that the subject of staff retention in the planning department was under constant consideration.

Under standing order 34 Councillor Dickinson commented that she considered the pay award should be kept separate from review of salary scales. She thought there were more contributory factors to be considered in the review and did not consider there was sufficient information to make changes at this stage.

Councillor Beales drew attention to local determination of pay, which meant that it could be looked at in order to fill the gaps to try to reduce the use of agency staff. He also drew attention to the need to look at the provision for Alive.  He supported the proposals set out in the report.

Councillor Ring commented on supply over quality issue and the need to look at the pay scales review.  He commented on increasing salaries of staff threatening to leave. 

Councillor Parish sought confirmation that if the proposals were agreed further work would be undertaken on grades etc.  Councillor Squire requested that in reviewing grades the whole package being offered to staff be considered, this was confirmed along with the provision for Alive leisure.  Councillor Parish commented that the bigger picture would be looked at to ensure the balance of wages and service was right.

The Executive Director conformed that the proposal to increase the top of pay scales was the first step on the journey to the wider piece of work to be done.

Councillor Parish informed Cabinet that Unison had asked him if the £750 could be paid as a lump sum, he reminded members that April to September would be paid as a lump sum.  The Executive Director explained that payment of the whole lump sum  would be making advance payments that would be recoverable if staff left.  In response to a question it was confirmed that the sum reflected the gap in cost of living over the last 2 years, but the payment was part of the 23/24 award.

Councillor Beales supported the recommended proposal of part lump sum and the rest paid monthly. Councillor Morley suggested it be paid in 2 lump sums. On being voted upon it was agreed that the recommendations contained within the report be agreed.

The recommendations set out in the report were agreed.

RECOMMENDED:      1)         That:

a)     An increase of £1925 or 5% (whichever is the greater) be applied to all salary points.

b)     A flat rate non-consolidated cost-of-living payment of £750pa (pro rata for part time employees) to be paid to all permanent employees and temporary staff (with a contract specifying a duration of 12 months or more) who were in post on 1^st April 2023.  This payment to be paid in 12 monthly instalments with effect from April 2023.

c)     The top points of all grades (not individual salaries) are increased by the maximum applicable percentage increase (10.38%) with effect from 1^st October 2023.  This will not have an immediate financial impact but will assist with future recruitment and retention. 

2)         That changes to annual leave and working hours are not implemented as part of the local Pay Award as any changes to terms and conditions that are negotiated nationally would continue to apply to our employees.

Reason for Decision

To implement an annual pay increase for employees that balances the requirement to make financial savings with the need to recruit and retain good quality employees.