Agenda item

The Committee considered a report on the proposed pay award to staff for 2021-22.  Councillors noted that the Managing Director had delegated authority to determine the annual pay award for all staff in the salary bands below Director level as set out in the Council’s Constitution under Part 3, Delegation to Officers:

In consultation with the Leader, to determine the annual salary increase to locally determined salary scales for grades below Director level, provided that the cost of such is within the relevant overall budgetary provision

The Committee acknowledged that the Council was facing a severe financial shortfall in the next few years and immediate action was required to redress this.  The cost of any pay award was significant, and this had to be balanced with the Council’s ability to meet the costs of the award. In view of this, the Managing Director had agreed in consultation with the Leader of the Council, and with Unison, that no pay award would be made this year.  However, it had been proposed that the lowest paid workers, (those on Band 2 and below) should receive a non-consolidated payment of £250 on 1 July 2021.

The Council’s Pay Policy Statement 2021-22 had set out the Council’s approach to reviewing levels of pay annually.  It stated that the Council would ensure that overall remuneration packages aligned with market norms for local government and public sectors while at the same time taking account of pay levels in the local area, including neighbouring public sector employers.

It was the Government’s view that Local Government should exercise restraint in making pay awards this year.  Coupled with this, the UK currently had very low rates of inflation and had seen a contraction of pay rates in the wider UK economy.  Each 0.5% pay award had a cost to the Council in the region of £135,000.  The report included details of the pay awards that had been agreed by other Surrey councils for 2021.

The cost of making the proposed non-consolidated payment of £250 for staff on Bands 1 and 2 would be £63,000.  As there was no budget provision made for a pay award this year, this would be funded by bringing forward funds set aside for next year’s pay award (2022-23) as set out in the medium term budget approved by the Executive on 24 November 2020.

Incremental progression was a contractual benefit and 326 staff out of 683 staff, (almost half of our workforce) were eligible to receive incremental progression this year.

The Committee noted that the Managing Director had agreed a request from Unison, as part their pay claim this year, for the award of an additional day’s leave on the anniversary of 15^th and 25^th year of service. This would be a non-consolidated gift in each of those years and not added to an employee’s leave allowance and could not be claimed retrospectively. 

The Committee, having discussed a number of options in relation to recognition of the hard work and dedication of the Council’s staff over the past 12 months

RESOLVED: That the decision of the Managing Director not to make a pay award but to make a non-consolidated payment of £250 to all staff on Grade 2 and below on 1 July 2021 be endorsed.

Reason:

To ensure that the Council’s lowest paid workers receive a payment in the absence of a pay award.