Decision details

Pay Award 2018/19

Decision Maker: Lead Cabinet member for Resources

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

Annual Pay Award for SCDC employees

 

South Cambridgeshire District Council has a local agreement with trade unions which covers negotiation of local terms and conditions, pay scales and pay awards. In considering annual pay offers and agreements the council takes account of national pay negotiations, local job market forces and affordability.

 

The Local Government Association advised local government employers in April 2018, that agreement had been reached with trade unions for a two year pay deal. Broadly, this was 2% across the majority of the NJC pay scale with additional percentage increases for the lowest spinal column points (SCP).

 

Local pay discussions and negotiations with the recognised trade unions at SCDC (GMB and Unison) have taken place. The trade unions submitted a pay claim which has been taken into account during negotiations.

 

The Council, in its negotiations, has also taken account of two issues which staff have routinely raised through surveys and workshops – equalisation of annual leave and reimbursement of professional fees.

 

Considerations

 

·         The Trade unions submitted a pay claim to the Council. The claim was for a minimum increase of 5% for all staff. This is significantly in excess of the nationally agreed pay award negotiated and agreed with national employers and trade unions. Cabinet were made aware of this pay claim.

·         The ‘new’ National Living Wage is currently £7.83ph for 25year olds and over. The rate will increase on 1 April 2018 to £8.21ph.

·         The ‘Real Living Wage’ set by the Living Wage Foundation, at the time of the Council’s final pay offer to trade unions and union ballot was £8.75ph (outside of London). The new rate of £9.00ph has just been announced.

·         Current policy is that South Cambridgeshire District Council should have regard to the Living Wage when reviewing annual pay awards for Council employees.

·         The 2018/2019 budget was agreed by Council on 22 February 2018, this made provision for a 1% increase on salaries for this financial year. 

·         South Cambridgeshire District Council has made budget provision in the MTFS for a 1% increase from 1 April 2018. The Lead Cabinet Member can only approve a pay award within planned budget levels. Approval for a percentage increase above 1% would need to be considered and approved by Full Council.

·         It should be noted that Member allowances are increased by the equivalent percentage amount.

·         There are costs associated with equalisation of annual leave and reimbursement of professional fee.

 

Implications

Financial modelling has been undertaken to assess the impact of the NJC pay deal and Living Wage:

·         The impact of applying a 1% increase on all SCDC pay points is £200K which is within agreed budgets

·         The impact of applying the Living Wage Foundation rate of £8.75ph from 1.4.18 is £4K (includes £3.2k on HRA), this will also be within service budgets

·         The National Living Wage is anticipated to reach £9.00ph by 2020. Currently this has minimal impact on SCDC current grades, the Council does not employ any staff, below the National Minimum or National Living Wage

·         The Living Wage Foundation rate is currently higher than SCDC pay rates in Grade1. The rate was anticipated to reach £9.00ph during 2018/2019 (this has now been confirmed).  If the rates continue to increase as predicted it will impact on SCDC Grade 2 pay rates. In this scenario, the Council will need to consider a review of pay scales.

·         The cost of equalisation of annual leave is £100K and the anticipated cost of reimbursement of professional fees is £90K. These costs will have to be found from within existing service budgets.

 

Consultation

 

The Council has been in discussions and negotiations with the recognised trade unions for the purpose of reaching an acceptable pay deal, during the discussion the Council advised the unions that budget includes provision for a 1% pay award for all staff for 2018/2019.

 

GMB and Unison have balloted their members. They have confirmed that the pay deal has been accepted.

The Council has ensured that all SCDC staff have received regular communications in relation to the negotiations and pay offer.

 

Recommendation

 

It is recommended that the Council:

a)     applies a 1%increase on all pay points with effect from 1st April 2018 or the Living Wage rate (effective at 1 April 2018) of £8.75 per hour, whichever is the highest, with effect from 1st April 2018

b)     equalises annual leave and reintroduces the reimbursement of professional fees.

 

The decision for 2018/2019 is within approved budget provision. The MTFS and 2019/2020 budget is subject to Council approval in February 2019.

Decision:

Agreed recommendations.

Reasons for the decision:

Within agreed budget for 2018/2019.

Publication date: 27/11/2018

Date of decision: 27/11/2018

Effective from: 05/12/2018

Accompanying Documents:

  • Pay Award