Consideration was given to the report of the Executive Director on the Review of the Local Pay Award 2020.  Pay award discussions had been on-going with Staff Side/UNISON and Members’ views were being sought on proposals for a pay settlement to enable negotiation with Staff Side/UNISON to be progressed. 

The Executive Director outlined the key issues to be taken into account which included current inflation and future trends; the national local government pay award of 2.75% that had been proposed by the employers but not yet settled; the current budget allocation of 2%; the Living Wage (from the Living Wage Foundation separate from the National Living Wage), which sought to provide a socially acceptable wage level; and recruitment trends.  Any pay award agreed for staff would also be applied to Members allowances.

As part of setting the annual revenue budget for this year, Rother’s pay award for 2020 was budgeted at 2% and this figure had been used in the agreed Medium-Term Financial Plan for future years.  Members were reminded that any enhancement beyond this budgeted figure would require full Council approval and have to be found from within the existing budgets and would further increase the financial pressure on the Council.

Members were mindful of the current uncertain climate and sought clarity on a number of issues prior to final determination.  The following points were noted during the discussion:

•     it was confirmed to Members that if a percentage increase was approved, it would be applied to all grades and Members could agree to a fixed minimum amount payable, to ensure financial security for the lower paid members of staff;

•     a 2.75% increase was suggested but with a capped amount applicable, and that Members’ allowances be frozen for one year in order to be able to increase that capped amount and remain within budget.  Members were advised that this would result in a 2.75% increase being applied up to grade 4 only, as the cap would have to be set at £600 to keep within budget;

•     due to the difficulty in recruiting to professional posts as the pool of local government professionals nationally was diminishing, Members considered a 2% increase across the board and to setting a minimum amount payable at the lower grades.  This would seek to assist in recruiting to the professional posts; 

•     every member of staff was on a pay grade relative to their post made up of increments which gave some degree of flexibility,  protected staff and ensured equal pay;

•     Members agreed that it was important to maintain good staff morale, attract talent, retain staff and ensure security;

•     Members congratulated and thanked members of staff at all levels of the Council for their hard work during the COVID-19 pandemic and were keen to show that appreciation by providing financial security; and

•     Members suggested  freezing Members’ Allowances for 1 year and awarding the savings made as a result as a one-off payment to staff. However, it was agreed to defer these discussions as any changes to the current agreed Members’ Allowance Scheme would have to be considered by an Independent Renumeration Panel (IRP) in any event.

Members were keen to reward and recompense the staff employed by the Council and therefore agreed that the Council continued to support the Living Wage Foundation for the lower paid permanent staff, that a 2% pay award across the board for one year be approved with a ‘root and branch’ review of the pay structure during the year, paying particular regard to the lower paid members of staff.  Members also agreed to Members’ Allowances being considered further in the future.

RESOLVED: That:

1)         the Council’s commitment to matching the Living Wage from the Living Wage Foundation be continued for lower paid permanent staff;

2)         a one year pay settlement increase of 2% across the board for 2020/21 be approved with a ‘root and branch’ review of the pay structure during the year, paying particular regard to the lower paid salary scales; and

3)         Members Allowances be considered further in the future.