Agenda item

a.         Salary of Chief Executive

b.         Salary of Strategic Directors

c.         Market Supplements

Consideration was given to the report presented by Simon Cooper, Human Resources Manager, and Phil Howe, Director of Human Resources, which provided details of the Annual Pay Policy Statement for 2015-16 that the Council was obliged to publish under Chapter 8 of the Localism Act 2011. In accordance with the Pay Policy Statement, and the situation where the Council was likely to undertake a recruitment process for a permanent position, the Staffing Committee was asked to confirm their support for a continuation of the proposed salary for a new Chief Executive and that the remuneration for Strategic Director current management level be continued.

Discussion took place on the use of market supplements in relation to recruitment and it was confirmed that such supplements would only be paid exceptionally if it was proven that market conditions and shortage of appropriately skilled, experienced and qualified candidates merited such a supplement. Market Supplements are temporary in nature and reviewable on an annual basis and if there was definite evidence of difficulty in recruiting.  These would not be as standard payment

In terms of the Annual Pay Policy Statement, the salary levels of the Chief Executive and Strategic Directors, the Staffing Committee were content with the details and were happy to recommend that the Statement be published and the salary levels as indicated be maintained at their current rates.

With regards to the Local Living Wage increase, agreement had been reached to implement a local living wage from 1st October, 2014 and, in an attempt to maintain the new differentials in the pay structure, included the condition that the rate would be reviewed each year in line with any percentage pay award increase agreed by the National Joint Council (NJC) for Local Government Services.

The recent 2.2% NJC pay award effective from the 1st January, 2015 covered a longer period than normal, up to 31st March 2016.  This percentage uplift when applied to the current rate of £7.65 would increase to £7.82 from 1^st April, 2015.

If this new rate were applied it would be 3p less than the new national living wage rate of £7.85 announced by the Living Wage Foundation in November, 2014.  To increase Rotherham’s local rate to the national rate for 2015-16 using a supplement would cost an additional £28k (inclusive of on-costs).

In addition, if the rate was increased to the new national living wage rate, in order to maintain differentials for supervisory posts, it was proposed to increase the hourly rate for these supervisory employees (105) from £7.88 to £7.96.  This would incur a further £10k cost (inclusive of on costs).

The Staffing Committee were in agreement with increasing to the full national living wage rate of £7.85 per hour with the implementation of the associated change for supervisory posts for 2015-16.

Recommended:- 

(1)  That the Annual Pay Policy Statement be approved.

(2)  That the current salary levels of the Chief Executive and Strategic Directors posts remain.

(3)  That the ability to use temporary market supplements in recruitment of senior management posts be available but should only take place once the  business case for their application in terms of market conditions, shortage of suitablyskilled, experienced and qualified candidates and difficulty in recruiting, was proven.

(4)  That the Council’s local living wage be increased in line with the national living wage rate to £7.85 per hour along with the implementation of the associated  change for supervisory posts for 2015-16 with effect from 1^st April, 2015.