SUMMARY/PURPOSE
1.
This report summarises some of the current HR issues
affecting the Council.
CONFIDENTIAL/EXEMPT ITEMS
2.
This report is not
confidential.
BACKGROUND
3.
Pay Negotiations 2004
Trade
unions who, nationally, represent some 1.3 million staff covered by the local
government services agreement have lodged a claim for a 4% plus £200 pay rise
with a higher increase for the lowest paid. The claim includes a demand for a
£6.04 an hour minimum wage, increased annual leave, better maternity provision
and improved parental leave.
4.
The local government employers, who are seeking a
three-year pay deal, had warned the unions against lodging an unrealistic pay
claim. The employers had also made clear their intention to follow the advice
of the Local Government Pay Commission and the approach taken in the Pay and
Workforce Strategy (see below) and not negotiate a deal loaded towards those at
the bottom end of the pay scale.
5.
The employers have offered a 7%, three year pay deal
and also proposed reviewing the conditions of service in part 2 of the national
agreement, such as leave to make sure that the package is in line with the
wider economy. They have also proposed rewriting the elements of part 3 of the
national agreement that deal with premium rates so that they provide general
principles only, leaving the detail to be negotiated locally in a way which
promotes flexibility. A timetable is also proposed for the completion of local
pay reviews.
6.
The offer has been rejected.
7.
Pay and Workforce Strategy
The national Pay and Workforce Strategy for local government, devised jointly by the ODPM and the Employers’ Organisation, has now been formally approved. The strategy identifies five action areas local authorities need to tackle:
· Creating better leaders by recruiting and developing leaders (Elected Members and officers) who are not only able to prioritise and achieve key tasks, but who can also articulate a clear vision of where the organisation is going and carry the workforce with them.
· Creating a better workforce by recruiting and developing managers who, in addition to motivating and directing staff can ‘get the job done’ ie be able to manage people, manage risk, organise procurement, run projects, control finances, analyse options, make the most of new technology and help their staff to get on in life and in their careers by focusing on training and career development.
· Developing the organisation to achieve excellence in people and performance management, partnership working and delivery of customer-focused services by considering how authorities can get the best from their employees, through looking at areas such as flexible working, workforce remodelling and by learning from best practice in other authorities and in other sectors.
· Resourcing Local Government by increasing the emphasis placed on recruiting and retaining staff. Diversity and equality issues must feature highly on this agenda. Attention must be focussed on improving the image of local government and tackling the underlying reasons for failing to retain staff such as workplace stress, poor managers and lack of flexible working patterns.
· Pay and Rewards – having pay and reward structures that attract, retain and develop a skilled and flexible workforce while achieving value for money in service delivery.
8.
The Council’s
People Management Strategy already reflects the priorities of the National
Strategy. It is important that we continue to implement our People Management
Strategy if we are to deliver the strategic HR changes that inspectors will
look for in potentially good and excellent authorities.
9.
Stocktake of Local Government Pension Scheme
The ODPM has issued a consultation paper in which a number of significant changes to the Local Government Pension scheme are proposed. The main proposals, which would be operative from April 2005 can be summarised as follows:
·
Increasing the earliest age at which benefits can be
taken (other than on the grounds of ill health) from age 50 to age 55
·
Removing the ’85 year rule’ for new scheme members and
phasing it out for existing members
·
Introducing flexible retirement and incentives to
assist employers in retaining Scheme members in employment
·
Assessing whether or not scheme members, from a future
date, should pay a higher pension contribution rate
10. Nationally, the Local Government Pensions Committee is supportive of the proposed changes. The pension scheme is a useful management tool particularly when reorganisations are contemplated and it remains to be seen how much flexibility there will be in the new regulations. The changes may also be dependent on the final shape of the age discrimination legislation which the government intends to introduce from 1 October 2006.