Agenda item

Purpose: To seek agreement that the Statutory Pay Policy Statement be submitted to Council for approval for publication from 1st April 2017.

The Committee considered a report (Agenda Item 4) concerning the Council’s Statutory Pay Policy. Section 38 of the Localism Act 2011 required local authorities to publish an annual pay policy statement. The statement set out the policies in relation to:

(1)  Remuneration of its chief officers

(2)  The remuneration of its lowest paid employees (and the Council’s definition and reasons for defining it)

(3)  The relationship between the remuneration of its chief officers and those who were not chief officers.

Councillor Richard Crumly asked what the changes were from the previous year’s statement. Robert O’Reilly confirmed that the only changes related to the spinal column points on page 17 of the agenda which had been increased by 1% from the previous year.

Councillor Crumly questioned the reason for overlaps of pay grades on page 1 of the agenda. Robert O’Reilly responded that the overlaps were caused by the amalgamation of the Newbury District Council and Berkshire County Council grades. He had previously proposed to rectify this as under the current system there was a risk that an employee on grade F could earn more than their manager on grade G for a short time, however Members had deemed that it would be too costly to rectify. Councillor Carol Jackson-Doerge enquired whether the Council could be challenged about this; Robert O’Reilly confirmed that they could not as it was a contractual condition and the manager would be paid more than the direct report as he/she moved up the grade.

In response to a question from Councillor Mollie Lock, Robert O’Reilly advised that jobs were allocated a grade based on the job evaluation procedure. Historically some posts had linked grades but over the past five years jobs had been allocated single grades.

Councillor Lock questioned why it would be costly to simplify the grades. Robert O’Reilly advised that there would be a hypothetical cost as posts would be recruited to a higher spinal column point than they had previously.

Councillor Lee Dillon questioned why grades up to spinal column point 12 were not consolidated. He also asked whether the supplements those earning less than the National Living Wage were paid were pensionable. Robert O’Reilly advised that all pay was pensionable and the Living Wage supplement was offered at the Council’s discretion so it could not be consolidated into basic pay.

Councillor Lee Dillon asked whether the Council recruited employees at the top of the grade. Robert O’Reilly explained that the service arees had the discretion to recruit to the top of the grade if they had an exceptional candidate. In response to questions regarding pay rises, Robert O’Reilly explained that employees’ pay could increase either via cost of living increases or incremental progression subject to satisfactory performance or both if the employee had not reached the top of the grade and had achieved satisfactory performance.  

Councillor Lock asked what impact there would be on staff pay when the employee was part of a shared service. Robert O’Reilly advised that usually one authority acted as the lead and the staff in the shared service would sometimes choose to go onto the lead authorities’ pay scale after a TUPE transfer.

Councillor Dillon enquired whether external market factors were taken into account. Robert O’Reilly advised that such a Market Supplement scheme did exist but was abolished in 2013. Only children’s social workers had a similar mechanism to recognise market forces, whereby they were offered a bonus and sabbatical after three years in employment (known as “golden handcuffs”). Councillor Pamela Bale questioned why the Committee needed to review the policy when the only change was the 1% increase in the spinal column points and this was not part of the policy. Robert O’Reilly advised that the spinal column points were part of the policy and as the statement had to be published annually there was an opportunity to review it annually.

Following a further discussion regarding simplifying the pay grades, Robert O’Reilly agreed to update his previous proposal, and bring a report to Personnel Committee for discussion.

RESOLVED that the Personnel Committee recommend that the policy statement attached as Appendix C be submitted for approval to Full Council for publication in accordance with s38 of the Localism Act 2011.