Agenda item

Report of the Chief Executive.

(Cabinet Member with Special Responsibility Councillor Bryning)

 

The Chief Executive submitted a report at the request of Councillor Mace, seeking Cabinet’s views on pay inflation for 2009/10 and the application of Redeployment and Early Termination of Employment Policies. The Policies and the comments made by the North West Employers Organisation (NWEO) during its review of the Policies were attached to the report.

 

The options, options analysis, including risk assessment and officer preferred options, were set out in the report as follows:

 

Pay Inflation

 

(a)        Option 1 – Take no further action.  The risk is that, at this stage, we do not know whether the National Agreement on pay inflation will match budget provision.  However, it is not possible at this stage to estimate the outcome of national pay inflation.

 

(b)       Option 2 – Adjust the amount included in the budget.  The City Council is already at the lower end of pay inflation assumptions, however, when compared with other authorities, and coupled with this, the Council is facing greater financial risks generally in terms of its budget proposals for next year, than has been the case in recent years.

 

(c)        Option 3 – Lobby National Employers to introduce a zero pay inflation increase across the Local Government workforce.

 

(d)        Option 4 – Begin negotiations to remove Lancaster City Council from the National Pay Agreement and instead agree an approach through local pay bargaining.  This is a complex process and it is not possible to identify timescales.  There is a high risk of industrial relations problems.

 

There is no specific preferred officer option, but Officers would not recommend Option 2, given the financial risks outlined above.  Furthermore, Officers would not recommend Option 4 as being realistic within the timescales required for setting the 2009/10 revenue budget. Clearly, whilst the financial and budgetary aspects of pay are a matter for Cabinet, the terms and conditions on which staff are employed are a matter for the Personnel Committee, and if options 3 or 4 were to be pursued, then Personnel Committee should be involved.

 

Voluntary Redundancy

 

(a)        Option 1- Offer voluntary redundancy as an approach to people in posts “affected”.

 

(b)        Option 2 – Offer voluntary redundancy to people in those Service areas “affected”.

 

(c)        Option 3 – Offer the opportunity to apply for voluntary redundancy to all post holders apart from those in areas already identified as priorities.  For example, refuse collection and street cleansing.

 

(d)        Option 4 – Offer the opportunity to apply for voluntary redundancy to all post holders.

 

The officer preferred options are 1 or 2.  These approaches fall within the scope of the Council’s Early Termination of Employment Policy, and represent least risk (including financial risk) to the Council, of all the options outlined.  On the other hand, options 3 or 4 would require a review of the general approach set out in the Policy, and this would need to be considered by Personnel Committee as part of any review of the Policy.

 

Review of HR Policies

 

To request Personnel Committee to review its Redeployment Policy and Early Termination of Employment Policy.  Officer comments on the work of the NWEO would be included in any report to Personnel Committee.  Furthermore, if voluntary redundancy requests were sought in line with any of the options outlined above, the timing of such actions would need careful consideration, in view of any Policy review.

 

The three separate issues of Pay Inflation, Voluntary Redundancy and Review of HR Policies, as set out in the report, were considered in turn.

 

Regarding Pay Inflation, it was moved by Councillor Bryning and seconded by Councillor Blamire:-

 

“(1)      That Option 1 as set out in the report, to take no further action regarding pay Inflation, be approved.”

 

By way of amendment, Councillor Mace proposed and Councillor Charles seconded adding to the motion:-

 

“(2)      That Option 3, as set out in the report, to Lobby National Employers to introduce a zero pay inflation increase across the Local Government workforce, be approved.”

 

Upon being put to the vote, 2 Members voted in favour of the amendment (Councillors Charles and Mace) and 7 Members voted against (Councillors Archer, Barry, Blamire, Bryning, Fletcher, Gilbert and Kerr) whereupon the Chairman declared the amendment lost.

 

Members then voted as follows on the original proposition:-

 

Resolved:

 

(7 Members (Councillors Archer, Barry, Blamire, Bryning, Fletcher, Gilbert and Kerr) voted in favour and 2 Members (Councillors Charles and Mace) voted against.)

 

(1)        That Option 1 as set out in the report, to take no further action regarding pay Inflation, be approved.

 

Regarding Voluntary Redundancy, Councillor Bryning proposed and Councillor Blamire seconded:-

 

 “(2)     That Option 2, as set out in the report, to offer voluntary redundancy to people in those service areas “affected” be approved.”

Members then voted:-

 

Resolved:

 

(7 Members (Councillors Archer, Barry, Blamire, Bryning, Fletcher, Gilbert and Kerr) voted in favour and 2 Members (Councillors Charles and Mace) abstained.

 

(2)        That Option 2, as set out in the report, to offer voluntary redundancy to people in those service areas “affected” be approved.

 

Regarding Review of HR Policies, Councillor Bryning moved and Councillor Kerr seconded:-

 

“(3)      That Cabinet requests Personnel Committee to review its Redeployment and Early Termination of Employment Policy.”

 

Resolved unanimously:

 

(3)        That Cabinet requests Personnel Committee to review its Redeployment and Early Termination of Employment Policy.

 

Officers responsible for effecting the decisions:

 

Chief Executive

Head of Legal and Human Resources

 

Reasons for making the decisions:

 

The 2009/10 projected budget includes provision for an estimated 2% pay increase and the decision to take no further action regarding pay inflation means that this provision will remain in the budget. The decision regarding voluntary redundancy represents less financial risk to the Council that some of the other options presented in the report. The decision regarding HR Policies recommends a review of the Council’s Redeployment and Early Termination of Employment Policies following on from a recent desktop review by the North West Employers Organisation.