Agenda item

(a)       That the Committee  notes and welcomes the progress made in reviewing the Pay Model to incorporate the national pay agreement;  and

(b)       notes the other information contained within the report; and

(c)        expresses its thanks to all of the officer team involved  in the Pay Model review and associated work

The Chief Executive introduced a progress  report on (1) pay modelling for the implementation of the second year (2019) of the two year National Joint Council (NJC) pay agreement (2018/19 – 2019/20); and (2) maintenance of structural design and terms of employment following the Single Status Agreement  (2014).

The Chief Executive provided background information and advised that if the Council implemented the second year of the two year NJC pay agreement as  per the national model on a straight like for like ‘read across’ basis,  the local  pay model would be disrupted to an extent that it would no longer meet organisational design and pay policy principles and might be open to challenge on the grounds of gender inequality.  Consequently, the existing Council pay model had been fundamentally reviewed to accommodate the national pay agreement. 

The Senior Manager, Human Resources and Organisational Development, reported on pay modelling, maintenance of the Single Status Agreement, and Organisational Change and Redesign.  She advised that year 2 of the NJC pay agreement included the introduction of a ‘new’ pay spine with assimilation to newly created spinal column points and necessitated a  fundamental change to the pay model/spine locally.   Local agreement had been reached on a preferred pay model in March 2019.  The overall outcome of the new model not only resulted in the implementation of the new national pay spine provided for as part of the two year agreement, but achieved a smoothed pay spine, addressed pay parity and the gap between the Greater London Provincial Council (GLPC) core pay and Hay senior pay scales. 

The Senior Manager, Human Resources and Organisational Development explained that the new pay model passed the tests of being legal, equitable, workable, sustainable, acceptable and affordable.  Initial communications to employees were made in March. The effective date of the new pay model was 1 April 2019 and the target date for implementation was July 2019 (to be backdated to April 2019).  In addition to an internal Equity Impact Assessment, an independent Equality Impact Assessment was commissioned. The Assessments were positive and provided assurance. The Senior Manager continued that final approval was given to the proposed pay model and grading structure by the recognised Trade Unions in April, and work had commenced on implementation.  She advised that the critical activity being a data cleanse and realignment of portfolios on iTrent (the workforce software system) which had been completed.  The new model would be applied in a test environment for rigorous testing before being transferred into the live environment.

The Chief Executive and the Senior Manager advised that preserving the integrity of the pay model was critical to protect the Council from equal pay claims.  Governance of the ongoing maintenance and monitoring of the Single Status Collective Agreement ensured the integrity of the Agreement was preserved and was achieved in part through the provision of regular Equal  Pay Audits and follow-up action plans in addition to service redesign.

Councillor Billy Mullin referred to the difficult and complex work undertaken in the Pay Policy and Pay Model Review and expressed thanks to the Chief Executive and Senior Manager Human Resources and her team for their work.  It was agreed that the Democratic Services Manager would  send an email to on behalf of the Committee, to thank the Chief Executive, Chief Officer (Governance), Corporate Finance Manager, and Senior Manager Human Resources & Organisational Development, for their work and asked that thanks also be passed to other staff involved.

During discussion Officers responded to the comments and questions raised by Members concerning the National Living Wage, payment of agency workers, and comparable pay models in other areas.

The Chair sought clarification on the figures provided for rates of protected allowances for Laboratory/Workshop Technicians.  Officers advised that the rates were agreed nationally and were confirmed as annual figures but were not applicable to the Authority. 

Councillor Arnold Woolley highlighted a typographical error on page 30 of the report and said Greater Local Provincial Council should be amended to read Greater London Provincial Council.  Councillor Woolley also said he had some concerns regarding pension matters that he would raise with Officers following the meeting. 

The Chief Executive advised that provision had been made in the annual budget for the pay award. 

The Senior Manager Human Resources explained that the majority of services within portfolios had been through some degree of organisational change since the implementation of the single status agreement in June 2014.  On each occasion this had necessitated a review of the operating model including structures roles and responsibilities to ensure consistency and safeguard of the Council from external challenges.

Councillor Paul Cunningham congratulated Officers on the report and  reiterated the thanks which had been expressed to Officers and all staff involved for their hard work on the Pay Policy and Pay Model Review.  

The recommendations were moved by Councillor Paul Cunningham and seconded by Councillor Arnold Woolley.

RESOLVED:

(a)       That the Committee  notes and welcomes the progress made in reviewing the Pay Model to incorporate the national pay agreement;  and

(b)       notes the other information contained within the report; and

(c)        expresses its thanks to all of the officer team involved  in the Pay Model review and associated work