Agenda Item No. 9
THE VALE OF GLAMORGAN COUNCIL
SCRUTINY COMMITTEE (CORPORATE RESOURCES): 9 FEBRUARY 2016
REFERENCE FROM CABINET: 8 FEBRUARY 2016
C3068 NATIONAL LIVING WAGE/EMPLOYEE PAY POLICY 2016/17 (L) (SCRUTINY COMMITTEE – CORPORATE RESOURCES) –
Approval was sought for interim changes to the National Joint Council (NJC) Pay Scale in light of the implementation of the National Living Wage from 1 April, 2016 and the Council's Pay Policy for 2016/17 prior to its submission to Council for consideration and approval.
On 1 April, 2016 the National Living Wage was going to be introduced at a rate of £7.20 per hour which would mean that the current bottom three pay points on the 'Green Book' pay spine would be below the statutory minimum level. The incorporation of the new National Living Wage as part of the NJC pay spine was subject to discussion between the National Employers and Unions and as part of the 2016 pay negotiations. The indications were however, that an agreement would not be reached prior to the end of the current financial year. The advice from the National Employers was therefore to begin making preparations for employees to have their pay increased in accordance with the National Living Wage. A copy of such advice was attached at Appendix B to the report. A copy of the existing NJC pay-spine and the effect of the proposed interim measures was set out in Appendix C as attached to the report.
The Council also had a statutory requirement under the Localism Act 2011 to prepare a pay policy statement for the new financial year 2016/17. The statement needed to be approved and published by 31 March, 2016. The Pay Policy Statement for 2016/17 had been produced on the basis of statutory guidance, advice from the Welsh Local Government Association and guidance from Welsh Government. It had also been drafted on the basis of the imminent statutory requirements of the National Living Wage from 1 April, 2016 and in anticipation of the interim arrangements as set out in paragraphs 10 to 15 of the report being approved.
At the meeting the Leader highlighted that there was a small typographical error at paragraph 4.3 of the Pay Policy Statement attached at Appendix A to the report, the figure of £13,981 should have read £13,891.
This was a matter for Executive and Council decision
Cabinet, having considered the report and all the issues and implications contained therein
(1) T H A T the interim changes to spinal column points 6, 7 and 8 of the National Joint Council (NJC) 'Green Book' pay spine as from 1 April, 2016, in the absence of the outcome of the current NJC Pay Negotiations as set out in paragraphs 10 to 15 of the report, be approved.
(2) T H A T the required changes to the Council's Pay Policy for 2016/17 as set out in the report (including those anticipated as a result of the approval of resolution 1 above) and as incorporated in the revised statement attached at Appendix A to the report, be noted.
(3) T H A T the Pay Policy be endorsed and referred to the Scrutiny Committee (Corporate Resources) for consideration on 9 February, 2016 and for final consideration and approval by Council on the 2 March, 2016.
Reasons for decisions
(1) To accommodate those changes required as a result of the implementation of the UK National Living Wage as from 1 April, 2016.
(2) To respond to the legal requirement under the Standing Orders (Wales) Amendment Regulations 2014, the Local Government (Wales) Act 2015 and related advice from Welsh Government.
(3) To respond to the legal requirement under the Localism Act and to provide openness and accountability in how the Council rewards its staff.