Agenda item

To consider the report of the Director Corporate Services and Head of Human Resources.

(Report circulated)

Councillor Mitchell declared a personal and prejudicial interest as his uncle is an employee of the Council and left the meeting during consideration of the item.

The report of the Director Corporate Services and Head of Human Resources was submitted, to (1) give further consideration to the discretions currently agreed by the Council for redundancy/efficiency compensation; (2) consider and agree a Redundancy Selection and Redeployment Policy for the Council in the event of compulsory redundancy situations; and (3) to give further consideration to the arrangements for protecting pay of employees in cases of redundancy redeployment and downgrading of posts.

The Director Corporate Services presented the report and explained the rationale behind the proposals. 

A Statement by Karen Williams, Chair and Service Conditions Officer of Exeter City Unison branch, on behalf of Unison, together with the response of Management, was circulated. Karen Williams attended the meeting and addressed Executive members. She  expressed concern about the short period of consultation regarding the proposals to change the level of discretionary benefit and reported that legal advice taken by Unison, supported by case law on the subject, had indicated that this had been insufficient. She reported that a well-attended branch meeting of Unison on 29 January had unanimously rejected the proposals and instructed the Branch Committee to continue consultations on the matter along with the proposed Redundancy Selection and Redeployment Process. She also queried the selective use of comparative terms and conditions with other authorities and drew attention to the absence of an equality impact assessment on the recommendations.  She emphasised Unison’s desire to maintain their record of co-operative working relationships with and support for the Council.

Councillor Edwards expressed sympathy with the position of Unison and agreed that the period of consultation had been short. He enquired whether the Council could revert to its former terms and conditions once the financial crisis was over and queried the impact of the local government review on the proposals.

The Director Corporate Services reported that in the event of a single unitary Council it was likely that the level of discretionary payments would be agreed between affected local authorities across the board. He acknowledged that an Equality Impact Assessment should be undertaken on the policy for redundancy and redeployment and agreed that one would be completed in consultation with the unions. The Head of Human Resources referred to advice received from the Local Government Employers organisation and the fact that a protected pay period of 5 years was no longer considered sustainable in equal pay terms. 

The Chair emphasised the Council’s appreciation of good staff relations and regretted the fact that it was faced with making decisions of this nature. He referred to the wish to treat staff fairly whilst being aware of the impact of the economy on the Council and in the wider community. In considering the terms and condition of staff, the Council had to be mindful of the potential cost of benefits in the context of the current financial circumstances.

Executive resolved that, based on the Council’s existing practices and retaining as much flexibility as possible with consideration to funding implications, the following recommendations be agreed:

(1)     Local Government (Early Termination) (Discretionary

Compensation) (England and Wales) Regulations 2006 -

(Redundancy/Efficiency payments)

(i)      To reduce the discretionary multiplier from 3.46 to 2 with a maximum of 60 weeks for both redundancy and terminations of employment in the interests of the efficient exercise of the Council’s functions.

(ii)     To implement the changes with effect from 1 April 2009 except as indicated below.

(iii)    To continue to apply the maximum discretion arrangements that are currently in place to those redundancies and terminations of employment in the interests of the efficient exercise of the Council’s functions arising from the current AFU restructure, the staffing reductions being considered at the RAMM (consequent upon Renaissance funding) and any staffing reductions resulting from the budget savings to be agreed by Council in February 2010 for the financial year 2009/10.

(iv)    To continue to consider each case on its own merits taking into account a business case.

(2)        Redundancy Selection and Redeployment Policy

(i)      The Redundancy Selection and Redeployment Policy as outlined in Appendix A of the report, to complement the current Redundancy Policy, be agreed in principle, subject to the completion of an Equality Impact Assessment in consultation with the unions, and the Leader and the Chief Executive be granted delegated authority to approve any amendments considered appropriate following that process.

(3)        Protected Pay Arrangements

(i)         To reduce the period of protecting pay, in cases of redeployment to a lower graded post following redundancy or when a post is downgraded following Job Evaluation, from 5 years to 3 years with pay awards being applied for the first 2 years.

(4)        To notify the recognised Trade Unions and advise Devon County Council, as Administering Authority, of the Council’s policy and notify employees.

Councillor Mitchell declared a personal and prejudicial interest as his uncle is an employee of the Council and left the meeting during consideration of the item.

The report of the Director Corporate Services and Head of Human Resources was submitted, to (1) give further consideration to the discretions currently agreed by the Council for redundancy/efficiency compensation; (2) consider and agree a Redundancy Selection and Redeployment Policy for the Council in the event of compulsory redundancy situations; and (3) to give further consideration to the arrangements for protecting pay of employees in cases of redundancy redeployment and downgrading of posts.

The Director Corporate Services presented the report and explained the rationale behind the proposals. 

A Statement by Karen Williams, Chair and Service Conditions Officer of Exeter City Unison branch, on behalf of Unison, together with the response of Management, was circulated. Karen Williams attended the meeting and addressed Executive members. She  expressed concern about the short period of consultation regarding the proposals to change the level of discretionary benefit and reported that legal advice taken by Unison, supported by case law on the subject, had indicated that this had been insufficient. She reported that a well-attended branch meeting of Unison on 29 January had unanimously rejected the proposals and instructed the Branch Committee to continue consultations on the matter along with the proposed Redundancy Selection and Redeployment Process. She also queried the selective use of comparative terms and conditions with other authorities and drew attention to the absence of an Equality Impact Assessment on the recommendations.  She emphasised Unison’s desire to maintain their record of co-operative working relationships with and support for the Council.

Councillor Edwards expressed sympathy with the position of Unison and agreed that the period of consultation had been short. He enquired whether the Council could revert to its former terms and conditions once the financial crisis was over and queried the impact of the local government review on the proposals.

The Director Corporate Services reported that in the event of a single unitary Council it was likely that the level of discretionary payments would be agreed between affected local authorities across the board. He acknowledged that an Equality Impact Assessment should be undertaken on the policy for redundancy and redeployment and agreed that one would be completed in consultation with the unions. The Head of Human Resources referred to advice received from the Local Government Employers organisation and the fact that a protected pay period of 5 years was no longer considered sustainable in equal pay terms. 

The Chair emphasised the Council’s appreciation of good staff relations and regretted the fact that it was faced with making decisions of this nature. He referred to the wish to treat staff fairly whilst being aware of the impact of the economy on the Council and in the wider community. In considering the terms and conditions of staff, the Council had to be mindful of the potential cost of benefits in the context of the current financial circumstances.

RESOLVED that, based on the Council’s existing practices and retaining as much flexibility as possible with consideration to funding implications, the following recommendations be agreed:

(1)     Local Government (Early Termination) (Discretionary Compensation) (England and Wales) Regulations 2006 (Redundancy/Efficiency payments)

(i)      To reduce the discretionary multiplier from 3.46 to 2 with a maximum of 60 weeks for both redundancy and terminations of employment in the interests of the efficient exercise of the Council’s functions.

(ii)     To implement the changes with effect from 1 April 2009 except as indicated below.

(iii)    To continue to apply the maximum discretion arrangements that are currently in place to those redundancies and terminations of employment in the interests of the efficient exercise of the Council’s functions arising from the current AFU restructure, the staffing reductions being considered at the RAMM (consequent upon Renaissance funding) and any staffing reductions resulting from the budget savings to be agreed by Council in February 2010 for the financial year 2009/10.

(iv)    To continue to consider each case on its own merits taking into account a business case.

(2)     Redundancy Selection and Redeployment Policy

(i)      The Redundancy Selection and Redeployment Policy as outlined in Appendix A of the report, to complement the current Redundancy Policy, be agreed in principle, subject to the completion of an Equality Impact assessment in consultation with the unions, and the Leader and the Chief Executive be granted delegated authority to approve any amendments considered appropriate following that process.

(3)     Protected Pay Arrangements

(i)      To reduce the period of protecting pay, in cases of redeployment to a lower graded post following redundancy or when a post is downgraded following Job Evaluation, from 5 years to 3 years with pay awards being applied for the first 2 years.

(4)     To notify the recognised Trade Unions and advise Devon County Council, as Administering Authority, of the Council’s policy and notify employees.

(Report circulated)