Agenda item

To consider the report of the Deputy Chief Executive - report circulated

The Deputy Chief Executive presented the report which considered how the Living Wage might be implemented within the Council.  The report also considered the impact, both financially and organisationally, and sought to devise an appropriate plan to potentially enable implementation from 1 January 2014. The current living wage rate of £7.65 was based on a minimum income standard, including an analysis of the actual costs of living essentials such as rent, council tax, childcare and transport. The sum identified was intended to meet the basic needs to maintain a decent and safe standard of living, for a 40 hour week with no additional income. A list of the local authorities in England and Wales who had implemented, or were committed to the Living Wage, was attached to the report.

The implementation of the living wage would benefit 64 Exeter City Council employees whose current hourly rate was below this figure.  The implementation of any future increases needed to fall into line with the national wage negotiation timetable. Details of the City Council’s lower pay scales were also attached to the report.

The Chair was concerned over the concept of the living wage and potential increase in council tax and felt that this was the wrong time to implement the Living Wage.  The additional cost could have an adverse effect on smaller private businesses who were already feeling the effect of the compulsory pension contribution for all employees. There may also be consequences for individuals who had worked through the local government pay scale to gain the status and qualifications to merit a rise through the grades, with any recognition or incentive having been removed from an amalgamation of the lowest spinal column points. The Chair referred to the pressure felt by the Council in allocating £100,000 to the wage bill and that other staff may have expectations of a pay rise. She felt that she was unable to support the recommendations.

A Member referred to the increasing levels of food poverty and felt that now was the right time to realise the ambition of the scheme.  A Member also agreed that the Living Wage was about enabling people to live and the additional wage bill could be put to good use to feed families.  She was pleased that Exeter University as an employer had also adopted this stance.

The Deputy Chief Executive gave the following responses to Members’ questions:-

·           That an approach will be made to those employees who will benefit from the increase in the Living Wage who may have previously withdrawn from the local authority pension scheme, to encourage them to contribute and take up the offer of a workplace pension.

·           Staff had been very supportive of the effort being made to close the gap between top and bottom pay scales. A number of presentations had been made and these had been positively received.

·      A Cost of Living Forum had already set up a sub group to consider the issue of wages.

·           Negotiations with the local authority trade unions had been supportive of the living wage increase.

·           The cost of the increased salary costs had been funded by the reduction in the number of the Council’s Senior Management Team.

 
The Scrutiny Committee – Resources noted the report and requested that Council:-

(1)     adopt the Living Wage for employees with Council Contracts of Employment and associated casual staff (excluding apprentices), commencing 1 January 2014;

(2)     delay the implementation of any future increases in the Living Wage until the subsequent April, to bring any increases in line with the national wage negotiation timetable;

(3)     amend the current and future pay scales to reflect the changes invoked by the adoption of the Living Wage;

(4)     increase the budgeted allocation by £25,000 in order to meet additional salary costs;

(5)     amend the Council’s Pay Policy to reflect the changes highlighted above; and

(6)     to conclude any outstanding negotiations with the recognised Trade Unions.

(Report circulated)