Agenda item

ESTABLISHMENT COMMITTEE

(Deputy John Barker, OBE)

20th June 2013

Pay Award 2013

Each year, the recognised Trade Unions submit a pay claim on behalf of the staff to take effect from the 1st July in that year. Due to financial pressures across the organisation and the Government’s public sector pay policy, the last consolidated pay award was made in 2009 when a 1% increase on basic pay was made to all staff excluding Chief Officers. This was agreed on the basis of productivity savings including the removal of up to three days protected annual leave by the end of 2012.

In 2010, there was no pay award to staff. In 2011, under the government’s public sector pay policy, the City made a one-off non-consolidated payment of £250 to staff in grades A-B who are the lowest paid staff within the organisation. 2012 saw a small increase to London Weighting for all staff below Chief Officer Grade.

This year the Establishment Committee felt able to make an across the board Pay Award of 1% to all staff. This offer was put to Trade Union representatives and, in the course of the discussions, which were extremely positive and constructive, the union representatives put forward some alternative proposals which they asked the City Corporation to consider. Their initial request was to consider a 1.25% increase in salaries. After some discussion, they requested that consideration be given to a 1% uplift, to moving Grade A up by one spine point (from £12,260 - £13,400 to £12,650 - £13,810) and to using the 0.25% differential to add to London Weighting.

 

These proposals are felt to have merit as they ‘bottom load’ the pay award to staff in the lowest grades which general across the board percentage increases fail to do. In addition, adding extra money to London Weighting again favours the lower paid for whom the general increase in cost of living e.g. travel costs, utilities etc. impact more on lower salary levels.

 

The cost of meeting these additional suggestions was investigated. In addition to the 1% uplift (a figure that the Chamberlain had already included in his financial report which was agreed by Finance Committee and which has already been budgeted for within local risk budgets), moving Grade A up a spine point would cost approximately £90,000 and adding extra money to London Weighting would cost £296,150 inclusive of on-costs. The Chamberlain has been consulted and confirmed that the cost of any changes to Grade A can be met centrally. Any additional payment in respect of London Weighting would be absorbed within departmental staffing budgets.

 

The Trade Unions plan to ballot their members on this matter and have indicated they would recommended acceptance to their members on this occasion.

 

We therefore recommend that this Court agree that:

·       an across the board increase of 1% be applied to salaries and London Weighting from 1st July 2013;

·       Grade A is moved up by one spine point with effect from 1st October 2013; and

·       the difference of 0.25% between the 1% offered and the Trade Union request for a 1.25% increase is allocated proportionately across the different levels of London Weighting.

 

Minutes:

ESTABLISHMENT COMMITTEE

(Deputy John Barker, OBE)

20th June 2013

Pay Award 2013

Each year, the recognised Trade Unions submit a pay claim on behalf of the staff to take effect from the 1st July in that year. Due to financial pressures across the organisation and the Government’s public sector pay policy, the last consolidated pay award was made in 2009 when a 1% increase on basic pay was made to all staff excluding Chief Officers. This was agreed on the basis of productivity savings including the removal of up to three days protected annual leave by the end of 2012.

In 2010, there was no pay award to staff. In 2011, under the government’s public sector pay policy, the City made a one-off non-consolidated payment of £250 to staff in grades A-B who are the lowest paid staff within the organisation. 2012 saw a small increase to London Weighting for all staff below Chief Officer Grade.

This year the Establishment Committee felt able to make an across the board Pay Award of 1% to all staff. This offer was put to Trade Union representatives and, in the course of the discussions, which were extremely positive and constructive, the union representatives put forward some alternative proposals which they asked the City Corporation to consider. Their initial request was to consider a 1.25% increase in salaries. After some discussion, they requested that consideration be given to a 1% uplift, to moving Grade A up by one spine point (from £12,260 - £13,400 to £12,650 - £13,810) and to using the 0.25% differential to add to London Weighting.

 

These proposals are felt to have merit as they ‘bottom load’ the pay award to staff in the lowest grades which general across the board percentage increases fail to do. In addition, adding extra money to London Weighting again favours the lower paid for whom the general increase in cost of living e.g. travel costs, utilities etc. impact more on lower salary levels.

 

The cost of meeting these additional suggestions was investigated. In addition to the 1% uplift (a figure that the Chamberlain had already included in his financial report which was agreed by Finance Committee and which has already been budgeted for within local risk budgets), moving Grade A up a spine point would cost approximately £90,000 and adding extra money to London Weighting would cost £296,150 inclusive of on-costs. The Chamberlain has been consulted and confirmed that the cost of any changes to Grade A can be met centrally. Any additional payment in respect of London Weighting would be absorbed within departmental staffing budgets.

 

The Trade Unions plan to ballot their members on this matter and have indicated they would recommended acceptance to their members on this occasion.

 

We therefore recommend that this Court agree that:-

1) an across the board increase of 1% be applied to salaries and London Weighting from 1st July 2013;

2) Grade A is moved up by one spine point with effect from 1st October 2013; and

3) the difference of 0.25% between the 1% offered and the Trade Union request for a 1.25% increase is allocated proportionately across the different levels of London Weighting.

Read.

The Court proceeded to ballot on the report of the Establishment Committee.

 

The Lord Mayor requested the Chief Commoner and the Chairman of the Finance Committee, or their representatives, to be scrutineers of the ballots.

 

Resolved – That the votes be counted at the conclusion of the Court and the results printed in the Summons for the next meeting.