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Special meeting, Personnel Committee - Tuesday, 12th March, 2024 2.00 pm
March 12, 2024 View on council website Watch video of meeting Read transcript (Professional subscription required)Summary
The personnel committee discussed several key issues, including a significant unexpected increase in pension strain costs due to voluntary redundancy, amendments to the pay policy statement, and the outcome of pay negotiations. The meeting was marked by concerns over financial management and the implications of pension and pay decisions on the council's budget.
Voluntary Redundancy Pension Strain Costs: The committee reviewed an unexpected rise in pension strain costs from £64,000 to £151,000 due to a voluntary redundancy. The increase was unforeseen and attributed to administrative oversight by the pension fund. Members expressed frustration and disappointment, highlighting the financial strain it places on the council's budget. The decision was to recommend the council note the redundancy and associated costs. The discussion underscored the need for better oversight and possibly seeking redress or adjustments in how pension estimates are handled.
Amendments to Pay Policy Statement: The committee agreed to remove a clause from the pay policy statement that suggested council approval was needed for certain redundancy payments over £100,000. This was deemed inappropriate as legal obligations require these payments when roles are made redundant. The decision aims to streamline processes and reflect statutory obligations, although it retains the requirement to report such payments to the council for transparency. This amendment aligns the policy with legal realities while ensuring the council remains informed about significant financial decisions.
Outcome of Pay Negotiations: After negotiations with union representatives, the committee ratified a pay increase of £1,500 or 5%, whichever is greater, for council staff. This decision came after union representatives pushed for an increase close to the current RPI of 5.2%, citing similar actions by other councils. The approved raise is expected to cost the council an additional £724,000, which had been anticipated and budgeted. The decision reflects a compromise that balances staff welfare with budgetary constraints and aligns with broader trends in local government pay adjustments.
The meeting highlighted the council's challenges in managing unexpected financial liabilities and the importance of maintaining fair labor practices amidst economic pressures.
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