Pay and Reward Meeting

1. Pay and Reward Meeting

2. Today’s meeting • Background to the proposed changes to the Council’s pay structure • Overview of proposed changes • What happens next

3. Background • 50% reduction in Government funding to SCC by end of 2015/2016 • Savings have had to be found across the organisation • Increment freeze for the past three years • Continuing with the increment freeze is not sustainable • Increments unaffordable - £4.7 million next year

4. Pay principles • Protection for the low paid - Living Wage • Maintaining national pay bargaining • Protecting as many jobs as is reasonable for as long as possible • Affordability • Pay that allows the Council to retain, motivate and attract staff • Implementing this approach across the board - Soulbury, JNC, LGS, Craft

5. Out of scope • Former Sheffield Homes • Former Public Health • Other staff TUPE’d into the Council • Teachers • School based staff

6. Pay proposal • Move to fixed (‘established’) point for each grade • Fixed points would be set as follows: • Grades 2 & 3 - one point below the highest point in the current grade • Grades 4 & 5 - at the upper mid point of the current grade • Grades 6 and above - at the lower mid point for the current grade

7. Pay proposal • Movement to the new rates would be in three equal instalments, from April 2014 • Entry level rate for new starters • Removes potential of existing staff being paid less than new starters • Interim to April 2016

8. Pay proposal • National pay awards will continue to apply • Grade structure and role profiles would be maintained • 12 month protection for lower paid

9. Pay proposal • Under the proposals: • 69% of employees will move up the pay scale • 23% of employees will receive less pay • 8% of employees will stay the same • We estimate these changes would cost £1.7m in 2014/15, and less than half the cost of increments over a three year period

10. Proposed Grades

11. Impact on Basic pay

12. Numbers impacted in each grade

13. Other issues • The principles • Protection for staff in MER processes • Living Wage • Enhancements - no proposal • Pension

14. Wider aspects of pay and reward • Career and learning and development • Enhancedsalary sacrifice schemes • Green travel • Training expenses • Annual leave/career breaks, etc • Performance management - career record and create a career path • Work/Life balance • Physical environment • Pension employer contributions

15. Trade Unions • Trade Unions are planning to ballot members on the proposal - aim to complete by end December • If the ballot result is a Yes – collective agreement and the proposal is implemented without any additional process • If the ballot result is a No - they may ballot for industrial action

16. Next steps/more info • New pay structure would be implemented from 1 April 2014 • You can find more information by: • Visiting the pay and reward section of the Intranet – http://intranet/payandreward • Reading the FAQs on the Intranet • Raising a question through the payandrewardenquiries mailbox