CABINET 14/2/2O12 AGENDA ITEM 13
MEDIUM TERM FINANCIAL PLAN 2012/13 – 2014/15 (INCLUDING COUNCIL TAX 2012/13)
APPENDIX 7 TO THE ABOVE REPORT
Fair Pay Policy
1.0 Context
The Council is required to publish specific pay policy statements including that applied to Senior Posts and its lowest paid employees by the Localism Act 2011. These obligations are met within this policy document. The Council complies with all statutory requirements as to the publication of an access to Chief Officer remuneration details.
2.0 Scope
This policy applies to all employees of the Borough of Poole, including the Council’s most senior officers and employees in community schools.
3.0 Local Government Services (LGS) employees
The majority of employees in service units (with the exception of Teachers, Soulbury and Youth workers, plus Chief Officers and the Chief Executive) and support staff in maintained schools are subject to LGS terms and conditions. This is a combination of nationally agreed terms and terms within current and future local collective agreements. The Standard Statement of Appointment Conditions sets out these terms.
Most jobs in the Council are evaluated using the Greater London Provincial Council (GLPC) job evaluation scheme. The correct pay grade for each post results from the process of job evaluation by trained panellists, and is a joint process between the Council and recognised trade unions.
It is the Council’s policy and is normal practice to appoint new employees to the lowest incremental point of their pay grade. In recognition of their increased experience and competence in their post, employees normally progress one increment up their grade annually on 1 April (1 September for Soulbury employees), or after six months service – whichever is the longer – until they reach the topmost increment of their grade.
4.0 Service Unit Heads
Service Unit Head jobs are evaluated using the South-West Councils job evaluation scheme, which is available on the Loop. Pay grades for Service Unit Heads are published on the Council’s web-site, as are the pay grades of LGS employees and the Chief Executive.
Other terms and conditions of employment for Service Unit Heads, including membership of the Pension Scheme, are the same as those for LGS employees.
5.0 Strategic Directors
Pay for Strategic Directors is determined by local interpretation and application of terms negotiated nationally through the Joint National Council (JNC) for Chief Officers, and also through a combination of nationally agreed terms and terms within current and future local collective agreements.
The five point incremental scale for Strategic Directors is set so that it commences approximately 7.5% above the maximum grade for Service Unit Heads, and has a maximum which is approximately 24% below the rate of pay applied to the Chief Executive’s post.
Annual incremental progression is dependent upon assessment of achievements through the appraisal process. There is no bonus scheme or performance-related pay.
6.0 Chief Executive
Pay for the Chief Executive is determined by local interpretation and application of terms negotiated nationally through the JNC for Chief Executives, and also through a combination of nationally agreed terms and terms within current and future local collective agreements. The Borough of Poole Chief Executive’s salary is below the average paid to Chief Executive posts in Local Government, nationally and regionally, for upper-tier authorities.
In Poole, t
he Chief Executive’s rate of pay will not exceed a multiple of 20 times the Council’s lowest rate of pay (excluding the national Apprentices rate for 16-18 year olds). In 2012/13, the actual multiple of the Chief Executive’s salary is 10.3 times that of the lowest rate of pay. Excluding Apprentices, the lowest rate is salary point 4 on the National Local Government pay spine, and is also the minimum of Borough of Poole Grade A.
Annual incremental progression is dependent upon assessment of achievements through the appraisal process. There is no bonus scheme or performance-related pay.
7.0 Policy on Pay for Senior Leadership Posts
As a result of its relatively small size and low funding, Poole has traditionally paid somewhat below the wider labour market rate for its senior leadership positions by comparison with many neighbouring local authorities and comparable organisations. In light of the massively increased pressures on funding across the public sector from 2010 onwards, the Borough’s pay policy will continue, for the immediately foreseeable future, along the lines described above. This means that the Council will expect to continue to remunerate senior leadership posts at levels slightly below the average rates seen in other broadly similar organisations, and will rely on other factors to enable it to continue to secure and retain high quality appointees.
In the event of any Chief Officer ceasing to hold office or to be employed by the Authority, the relevant provisions of the Council’s redundancy policy and/or other applicable policies such as the Pension Scheme, disciplinary or other provisions relating to ill-health retirement would be applied as appropriate, depending on the circumstances of the case and any contractual obligations on either side. If any senior post becomes vacant, appointments are reviewed and made by Members.
8.0 Elected Members
Elected Members of the Council are not employees and so are not subject to the provisions of this policy.
9.0 Policy on Pay for Lowest-Paid Employees
The lowest rate of pay used within the Council equates to the National Minimum Wage for apprentices. The National Minimum Wage is paid to a small number of learning disabled employees in supported posts. The Council applies this pay rate in order to comply with legislation.
Apart from these two categories of posts, the Council’s lowest incremental grade commences at salary point 4 of the nationally negotiated Local Government Services pay spine.
10.0 Labour Market Supplements
The Council will continue to make use of its policy on Labour Market Supplements, provided it has been shown to be necessary in individual cases where recruitment is initially unsuccessful. However, it is expected that very limited use of such supplements will be found justifiable for the foreseeable future.
11.0 Costs of Employment Collective Agreement – October 2011
This collective agreement varies some terms and conditions. The main variation is that for the year commencing 1 April 2012 an incremental freeze has been agreed by collective agreement between the Council and its recognised trade unions. This freeze applies to LGS employees in service units (but not in schools), Service Unit Heads, Strategic Directors and the Chief Executive.
Head of HR
February 2012
FairEqual Pay Policy – February 2012
Artemis/unit data/corporate/policies and procedures/service units/drafts
1