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Today's meeting outlined the proposed changes to the Council's pay structure in response to a 50% reduction in government funding. The Council has faced austerity measures, including a three-year freeze on increments, which is deemed unsustainable. The new pay structure aims to protect low-paid workers, maintain national bargaining, and ensure affordability while retaining staff. Key proposals include moving to fixed pay points for various grades and implementing changes in three installments starting April 2014. Trade unions will ballot members by December on these proposals.
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Today’s meeting • Background to the proposed changes to the Council’s pay structure • Overview of proposed changes • What happens next
Background • 50% reduction in Government funding to SCC by end of 2015/2016 • Savings have had to be found across the organisation • Increment freeze for the past three years • Continuing with the increment freeze is not sustainable • Increments unaffordable - £4.7 million next year
Pay principles • Protection for the low paid - Living Wage • Maintaining national pay bargaining • Protecting as many jobs as is reasonable for as long as possible • Affordability • Pay that allows the Council to retain, motivate and attract staff • Implementing this approach across the board - Soulbury, JNC, LGS, Craft
Out of scope • Former Sheffield Homes • Former Public Health • Other staff TUPE’d into the Council • Teachers • School based staff
Pay proposal • Move to fixed (‘established’) point for each grade • Fixed points would be set as follows: • Grades 2 & 3 - one point below the highest point in the current grade • Grades 4 & 5 - at the upper mid point of the current grade • Grades 6 and above - at the lower mid point for the current grade
Pay proposal • Movement to the new rates would be in three equal instalments, from April 2014 • Entry level rate for new starters • Removes potential of existing staff being paid less than new starters • Interim to April 2016
Pay proposal • National pay awards will continue to apply • Grade structure and role profiles would be maintained • 12 month protection for lower paid
Pay proposal • Under the proposals: • 69% of employees will move up the pay scale • 23% of employees will receive less pay • 8% of employees will stay the same • We estimate these changes would cost £1.7m in 2014/15, and less than half the cost of increments over a three year period
Other issues • The principles • Protection for staff in MER processes • Living Wage • Enhancements - no proposal • Pension
Wider aspects of pay and reward • Career and learning and development • Enhancedsalary sacrifice schemes • Green travel • Training expenses • Annual leave/career breaks, etc • Performance management - career record and create a career path • Work/Life balance • Physical environment • Pension employer contributions
Trade Unions • Trade Unions are planning to ballot members on the proposal - aim to complete by end December • If the ballot result is a Yes – collective agreement and the proposal is implemented without any additional process • If the ballot result is a No - they may ballot for industrial action
Next steps/more info • New pay structure would be implemented from 1 April 2014 • You can find more information by: • Visiting the pay and reward section of the Intranet – http://intranet/payandreward • Reading the FAQs on the Intranet • Raising a question through the payandrewardenquiries mailbox
