10 October 2013

Dear Colleague

Job Evaluation – Proposed Pay Scales and Consultation

As you are aware, we originally intended to release proposals on pay information on Wednesday

2 October 2013. We had also intended to include a number of terms and conditions in the consultations with yourselves and our trade unions and to instigate discussions around pay protection and what was affordable.

After a meeting with trade unions on Monday 30 September, it was put to us that it would be more appropriate to scope out proposals for pay protection if possible and that the terms and conditions items were too much to deal with at this point in time. After consideration of these points, I decided to put a proposal for pay protection forward. There has been a delay while this proposal was worked on and approved by the Chair of our Board. The publication of the pay information was therefore put on hold.

I am sorry for any upset this may have caused, but assure you that the benefit of our doing this is that we now have much fuller information to share with our trade unions and yourselves, which hopefully will alleviate some concerns. We are also restricting consultation to those items listed in this letter.

Included in this letter are the following (NB all documents are in the HR/Job Evaluation area of the Intranet):

  1. Anupdated “Job Grading Structure” document to reflect the outcome of appeals and/or re-evaluations since January 2013 (Appendix 1). This document has been updated to show the old job grade for each job role and the new job grade for each job role. It also shows the proposed pay increments for each job grade. We have not changed any of the grade boundaries from those published in January 2013, and have used these grades as the basis for carrying out pay modelling.
  2. A chart showing how the new grades link to the current SCP scales (Appendix 2 -
    STH JE Proposed Pay Structure).
  3. Some of you are on a single rate of pay (known as a “spot salary”). We have prepared a data sheet showing a fuller break down of each job role, its current pay rate, its new pay scale and how to link the existing spot salary to the new incremental pay scale. This is Appendix 3 - Spot Salary Pay Assimilation Data Sheet.
  4. If you are not on a spot salary,Appendix 4- JE Pay Structure Assimilationshowsexamples of how you will be assimilated i.e moved across into the new pay structure from your existing position, including allowing for any backdating due to April 2011.If you have changed job since April 2011, please refer to section 7 below.

In order to understand how the new pay rates apply to you, please read the following section.

We are required by law to undertake a period of consultation with our recognised trade unions and yourselvesfor a minimum of 45 days, commencing from the date of this letter, to enable challenges to be made or,for example, to work out the details of how we will move from the old salary scales to the new salary scales. We are aiming to introduce the new pay structure from April 2014 and are therefore providing information using April 2014 for illustrative purposes. However please note that no notice has been served on your current contract. For the time being, we can give information or assurances as follows:

  1. We are proposing a scheme of pay protection, as follows:
    For pay reductions of 0% to 19% of basic pay, protection will be for 12 months, to commence 1 April 2014 and cease 31 March 2015.
    For pay reductions of 20% to 39% of basic pay, protection will be for 24 months, to commence 1 April 2014 and cease 31 March 2016.
    For pay reductions of 40% or more or basic pay, protection will be for 36 months, to commence 1 April 2014 and cease 31 March 2017.
    *In each case the protection will be at full pay for the period referred to
  1. Where the rate of pay for a job has increased, we have identified a mechanism to move people into and up through the new salary for a grade, which is shown as Appendix 4 -
    JE Pay Structure Assimilation.
  2. We are maintaining our commitment to back date pay for anyone whose salary has increased as a result of job evaluation. However, please note that the backdating only applies to the job from the time when it has actually been carried out.

a)This means that if you have moved jobs in the period from April 2011 up until the time the pay structure is implemented you will have to have separate calculations for each job you have carried out.

b)If you appealed successfully on the basis of a change of job and re-written job description, pay changes will be calculated from the date the job role was carried out, or from the date the new job description was approved.

The information below covers the proposals to move from existing pay scales into new pay scales

  1. If you are paid at the maximum salary shown for your new job grade, your salary will be maintained at the maximum salary level (you will not have to go down to the minimum scale point and work up to the maximum scale point).
  2. If you are paid more than the maximum salary shown for your new job grade, your salary will be paid at the maximum salary level.
  3. If you are paid below the minimum salary shown for your new job grade, your salary will be increased to the minimum from April 2011 and the detail of how you will move up the salary scales and over what time is shown on the “JE Pay Structure Assimilation ”sheet
  4. If you are paid at a point between the minimum and maximum salary for a grade, you will maintain your current salary and move up it as shown on the “JE Pay StructureAssimilation ” sheet.
  5. Anyone whose job has not changed its salary (SCP) range and is due an increment in April 2014 will still receive their increment in April 2014.
  6. If you are on a spot salary, you will move into the new grade for your job and be placed on the increment scales. You will move into the highest nearest increment within the grade. If you are paid more than the maximum salary for the job grade, then point (8) above will apply. An example is shown on the “Spot Salary Pay Assimilation Data Sheet ”

Car Allowances

  1. In the final quarter of this business year we will be reviewing car mileage and usage data to determine if employees receiving Essential Car User allowance should continue to receive it, using the current terms under the National Conditions of Service as the procedure.

.Working Hours

  1. The new pay scales are based on the full time rate, which is the company standard of 37 hours per week. If you work less than these hours, you will receive pay pro rata to the full time rate. If you currently work 36.25hours, you will be offered the opportunity to change your working hours to 37 hours per week. This is to harmonise working hours across the company.

Next Steps

  1. Following distribution of the pay information today, wehave invited trade unions to undertake consultation discussions. In addition, we shall set up meetings for you to raise queries or arrangements for questions to be raised.
  2. We will be seeking voluntary agreement to the revised pay scales wherever possible and this is our preferred route. This will not be before consultation has been completed. As a last resort may have to move to terminate existing contracts and offer re-engagement on the new terms.

Support for Staff

  1. I appreciate that for some of you, the losses to your salary in the pay proposals will have a serious detrimental effect on your income. Please speak to your line manager in the first instance to alert them to any concerns you have, or if you prefer, to HR.
  2. We have an employee assistance line for people who have family, health, financial or other concerns which can be accessed via or 0800 282193. It is a confidential and free service. Their staff include qualified Financial Planning Advisors who can speak to you over the phone as well as many advice articles on the website. The user name is: sixtown and the password is: housing

For the time being, please read the enclosed information and if you wish to raise a query, please do so by

  • Email, to HRSTH or phone to Carl Robinson (8082) for queries about your working hours or current pay rate
  • Phone or email to Jayne Quinn (8083) for queries about the proposed pay scheme
  • Speak to your line manager
  • Contact your trade union representative

I appreciate that this will be a difficult time for everyone in the business and thank you for your patience during the process and your ongoing commitment to serving our customers as well as supporting each other.

Yours sincerely

Sharon McCambridge

Chief Executive