Agenda and minutes

To approve as a correct record the Minutes of the meeting of the Committee held on 3 June 2011.

The Minutes of the meeting held on 03 June 2011 were approved as a true and correct record and signed by the Chairman.

To receive any declarations of interest from Members.

Councillors Quentin Webb, Tony Linden and Andrew Rowles declared an interest in Agenda Item 4, but reported that, as their interest was personal and not prejudicial, they determined to remain to take part in the debate and vote on the matter.

Councillor Webb also confirmed that when this item had been discussed at previous Management Board meetings the members of the Personnel Committee that were present had left the meeting and had not taken part in any of the discussions.

Purpose: To seek consideration from the Personnel Committee of the multiplier under the Discretionary Compensation Regulations 2006.

 (Councillors Webb, Linden and Rowles declared a personal interest in Agenda item 4 by virtue of the fact that they were members of the Local Government Pension Scheme. However as they could not be made redundant as described in this policy their interest was personal and not prejudicial. They were therefore permitted to take part in the debate and vote on the matter).

The Committee considered a report (Agenda Item 4) concerning a proposed reduction in the multiplier used to calculate redundancy payments in light of lessons learnt from the reduction in the staffing establishment during 2010/11.

Robert O’ Reilly explained to those present what the redundancy multiplier was and also the reasons as to why it had been set at a factor of three when previously discussed by the Personnel Committee in March 2007. Mr O’Reilly noted that in considering lessons learnt from the redundancy exercise in 2010/11 the multiplier had emerged as an issue of concern due to the high cost of the exercise.

Members had therefore asked HR to undertake a survey of other local authorities to establish the level of multiplier they applied to redundancy payments. A survey had also been undertaken by the Local Government Employers. The information collected suggested that the average multiplier applied was 1.86 and Members had therefore asked Officers to revise the existing policy regarding the multiplier.

Five options for the future use of the redundancy multiplier were therefore put forward namely:

·        Option A – reduce the multiplier to one for all employees

·        Option B – reduce the multiplier to one and a half for all employees

·        Option C – to reduce the multiplier to two for all employees

·        Option D – to retain the multiplier of three for all employees

·        Option E – to reduce the multiplier to two for all employees aged under 55 at the age of dismissal by reason of redundancy and to reduce the multiplier to one and a half for employees aged 55 and over at the date of dismissal for redundancy.

Mr O’ Reilly explained that Option E had been put forward as the recommended option on the basis that employees aged 55 and over at the date of dismissal for redundancy would receive their pensions prematurely (if they were in the Local Government Pension Scheme) and the costs of early payment of accrued pension rights would have to be met by the employer. Legal opinion sought by the Council suggested that the differential multiplier at age 55 would not be contrary to age discrimination laws but legal challenge could not be ruled out.

In accordance with paragraph 7.6.2 (Motions which may be moved without notice) and 7.12.4 (Speaking) Members voted to suspend standing orders in order to allow Rosemary Culmer, Michelle Gordon and Ian Haggett to address the committee.

Prior to Rosemary Culmer presenting the views of Unison she read a statement from the ATL (Association of Teachers and Lecturers). The ATL was opposed to the proposal in relation to the Redundancy  ...  view the full minutes text for item 10.

Meeting required in week commencing 31 October 2011.

The Committee agreed to hold the next meeting on 24 October 2011 at 10.00am.